The Catalan operator Parlem has called an Extraordinary General Meeting of Shareholders for August 7 with the aim of approving a capital increase of €25.45 million.
The telecommunications operator Parlem has initiated mechanisms to strengthen its balance sheet. The company has called an Extraordinary General Meeting of Shareholders to be held on August 7 in the first call, and on August 10 in the second, to vote on a package of financial measures totalling €25.45 million.
Two capital increases to improve the accounts
The main item on the agenda is a capital increase by offsetting credits amounting to €17.5 million. This operation will allow a significant portion of the company's financial debt to be converted into capital, thereby reducing indebtedness and strengthening equity.
As explained by the company in the statement sent to its shareholders, the debt capitalisation will be submitted to the Meeting through five independent agreements, corresponding to the different credits subject to conversion. This way, compliance with commercial regulations is ensured and transparency in the process is provided.
Additionally, the Board of Directors will propose a cash capital increase of €7.95 million, with preferential subscription rights for current shareholders. The aim is to raise new financial resources to continue developing the company's strategic plan and consolidate its positioning in the telecommunications market.
Both capital increases will be carried out at an issue price of €0.80 per share, as stated in the documentation sent.
Driven by a significant shareholder
The call for this Extraordinary Meeting did not originate from the Board, but from a shareholder representing a significant portion of the share capital. This shareholder formally requested the holding of the Meeting to vote on the capital increase proposals.
Sources close to the operation indicate that behind this request is the Inveready fund and other creditors who are demanding payment of their debt from Parlem. The conversion of credits into shares would allow these creditors to enter the company's capital and, at the same time, relieve financial pressure on the operator.
“The capital increase by offsetting credits will help reduce indebtedness, strengthen equity, and provide Parlem with a more solid financial structure to face a new stage of growth,” states the statement sent by the company.
For current shareholders, the cash increase of €7.95 million represents an opportunity to maintain their percentage of participation if they attend the capital increase. However, they will have to pay €0.80 for each new share they wish to subscribe, a price that is well below the current share price on the BME Growth.
What it means for investors and the company
If the operation goes ahead, it will have a direct impact on Parlem's capital structure. On one hand, the capitalisation of debt will reduce financial leverage and improve the solvency ratio. On the other hand, the cash injection of €7.95 million will allow the company to have liquidity for its investments.
For current shareholders, the main effect will be dilution if they do not participate in the cash increase. Those who do not subscribe to new shares will see their percentage in the share capital reduced. The company has established a preferential subscription period that will be communicated after the Meeting's approval.
Parlem is listed on the BME Growth and has experienced a phase of strong growth in recent years, but has also accumulated significant debt. With this operation, the company seeks to lay the foundations for a new phase of expansion without the burden of indebtedness.
The Extraordinary General Meeting will be held on August 7 at 12:00 in the first call. Shareholders who cannot attend will be able to delegate their vote or vote remotely through the means provided by the company.
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