PARIS (Thomson Financial) - The result of Groupe Eurotunnel SA's 915.4
million euros rights issue, which closes tonight, will be "good news" for the
Channel Tunnel operator, a source with knowledge of the financing said.
The capital increase is very likely to bring new investors to the company,
as existing shareholders are not expected to take up their full rights and the
issue is fully underwritten by a banking syndicate, the source told Thomson
Financial News.
Jacques Gounon has said he expects existing investors to subscribe for 200
to 300 million euros of the rights issue, leaving shares worth around 500
million euros available for new investors.
He would like two or three new institutional investors each to inject about
200 million euros in conjunction with the operation.
The underwriting syndicate comprises ABN Amro, HSBC Holdings,
Lazard-Natixis, Lehman Brothers Holdings Inc. and UBS Investment Bank.
The source said it could be assumed that all or some of the underwriting
syndicate will become major shareholders, as they are the most likely
institutions to take a big stake.
The exact outcome will not be known until all applications for shares have
been studied, he said.
The operation is the second phase of a 1.7 billion euros capital increase by
the company aimed at raising money to buy back the NRS bonds issued last year as
part of the capital restructuring which enabled Eurotunnel to cut its 9.2
billion euros debt mountain by 5 billion to 4.2 billion.
In February it launched a convertible bond issue worth 800 million euros and
earlier this month bought back 841 million euros in NRS II bonds.
Goldman Sachs Group Inc.'s infrastructure fund is expected to end up with a
13 percent to 15 percent stake in Eurotunnel after reportedly buying up around
650 million euros of the convertible bonds.
Eurotunnel announced today that its restructuring has been chosen as Best
Financial Deal of the Year by the "Club des Trente", composed of the chief
executives and finance directors of the largest listed French companies.
The company will release the results of the rights issue some time in the
next few days, a spokesman said.
Andrew Newby; Andrew.Newby@thomsonreuters.com
an/cmr
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