June 4, 2020

The CNMV confirms that it will suspend listing of Deoleo from May 25


The National Securities Market Commission (CNMV) has confirmed this Friday that it will provisionally suspend the listing of Deoleo’s shares from May 25 at the close of the market, as requested by the company.

In a released statement, the stock regulator has specified that the decision affects the securities of both Deoleo S.A. as well as those of Deoleo Preferentes S.A., and it occurs “in the context of the corporate operation” that the company is carrying out, referring to the restructuring process that the oil company is undertaking.

The procedure – approved in January by its shareholders’ meeting – includes an “accordion operation” that will reduce and reduce its share capital to zero.

To do so, it will launch a capital increase of up to 50 million euros – its largest shareholder, the CVC fund, guarantees the subscription of at least 40 million, according to the prospectus approved by the CNMV and released yesterday.

Shareholders with subscription rights may attend the expansion from May 26 to June 9. If the amount is not completed, the rest of the shareholders may attend in a second phase; in a third, it would be the turn of the Preferentialists, and in the fourth shift any investor could attend, according to sources from the company.

From Deoleo they have indicated that they hope to return to the parquet next June 25, after completing their restructuring.

The restructuring of the group – which has accumulated heavy losses for a decade, a period in which its sales have fallen by half – involves the creation of a new subsidiary that will group “practically all” of the assets and liabilities of the current Deoleo .

49% of the aforementioned subsidiary will be owned by the firm’s financial creditors, while the remaining 51% will rest in the hands of the shareholders who are now attending the expansion.

The operation has been criticized by minorities, since in practice, if they do not attend the capital increase, they lose their participation; To compensate them, Deoleo has devised the delivery of “warrants” (purchase option certificates) so that they can distribute 10% of the value of a future sale of the company if it is sold for more than 575 million in the next 10 years.

In the Stock Market, the oil company started the session today downward, with a drop of more than 7%, until trading at around 3 cents.

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