Carbone Lorraine Plans EUR60 Million Capital Increase
16 Septembre 2009 - 7:43AM
Dow Jones News
French graphite solutions and electrical components company
Carbone Lorraine SA (CRL.FR) said Wednesday that it plans to carry
out a capital increase of around EUR60 million.
MAIN FACTS:
-This issue, subject to Autorite des Marches Financiers'
approval on the Prospectus, is aimed primarily at existing
shareholders who will enjoy preferential subscription rights.
-It is expected to be led by HSBC and Societe Generale.
-The PACEO equity line will be put on standby.
-The Group's two principal shareholders, namely AXA Private
Equity and Sofina, are expected to commit to taking up their full
allocations, thereby demonstrating their support for the Group's
strategy.
-Recent capital expenditures and acquisitions have been
predominantly debt-financed. If the Group wants to continue
pursuing growth initiatives, it will need to reduce this debt
level.
-In the medium term, Carbone Lorraine aims to bolster its
positioning in markets related to sustainable development, such as
alternative energies, energy efficiency and rail transportation. In
2008, these markets accounted for around one-third of the Group's
sales. The objective is for these markets to contribute more than
50% of the Group's sales, with 25% deriving from alternative
energies. Asia is expected to remain a region generating strong
growth for the Group. The objective is for the region to contribute
30% of the Group's sales.
-The substantial downturn in traditional markets sparked a
tangible top-line contraction, with like-for-likesales falling 6%
during the first quarter and 20% during the second compared with
the year-earlier period. During the third quarter, the sales
contraction compared with the previous year is likely to be on a
similar scale to that seen in the second quarter.
Company Web site: www.carbonelorraine.com
-By Paris Bureau, Dow Jones Newswires; +331-4017-1740;
alice.dore@dowjones.com