OHL and the banks will sign next week a new extension of their line of guarantees for an amount of about 315 million euros and for a period that is expected to be limited to four months, according to sources aware of the negotiations. The entities await the entry into the capital of the Amodio brothers to reinforce their support for the company, which has already accumulated more than a year of growth in its operating results and which aims to increase both the volume of guarantees and the term to generate more certainty and be able to multiply your hiring. From OHL they declined to comment on Monday.
Santander, CaixaBank, Bankia, Sabadell, Société Générale and Crédit Agricole, the six banks that support this line of guarantees, primarily for projects in Spain and Europe, have reaffirmed their commitment to OHL in the current terms, but for now they resist increase its volume, as requested by the construction company – up to around 450 million. The guarantees that will be renewed on January 31 represent, in any case, less than 10% of all the Spanish multinational has in the world (more than 3,500 million euros).
The bank values the evolution of the business of the company, which every quarter is closer to returning to profit, but for now it prefers to wait to open the hand for the corporate operation by which the Mexican construction company Caabsa, owned by the brothers Amodio, relieves the Villar Mir Group (GVM) as the first shareholder. An agreement was planned for December, as OHL CEO Manuel Álvarez acknowledged in November, but the negotiations, which are still ongoing, have not yet been closed.
Mexican investors have the advice of KPGM in this process. In fact, one of the tasks entrusted to the consultant has been to test the real financial support of Spanish and international entities to OHL in the face of the new stage that would open with its landing as reference shareholders.
Its landing will presumably be implemented through a capital increase without a pre-emptive subscription right for about 20% of OHL, which would grant Amodio 16.6% of the company. Additionally, the Amodio will acquire approximately 13% of OHL from Villar Mir – it has 30.6% – to stay below 30% that would force Mexican investors to launch a public tender offer (opa).
OHL takes off in stock market
At current prices and without considering premiums, both operations would imply a disbursement of 141 million euros, an amount significantly higher than what was estimated in October when the negotiations were known (about 106 million). Since January 1, OHL has risen 39.6% in the stock market.
