Positive stock exchange session for Safilo, up by about 2.5% at the end of the day at 1.58 euros per share after the Board has set the details of the 150 million euro capital increase that will start on December 3rd to end the 17 of the same month. A “super-dilapidating” recapitalization given that already in September, when it was announced, capitalization was around that figure and since then it has slipped further under 100 million euros (the stock also loses more than 64% compared to 12 months ago).
The transaction will see the offer to shareholders of 17 new shares for every 5 existing shares at a price of 0.704 euro each, with a 21% discount on the Terp. The rights will be processed from 3 to 11 December and will be exercisable by December 17th. The analysts of Equita Sim, which on the stock express a “hold” rating with a fixed price target of 2.5 to 2 euros after the publication of the results of the first nine months of the year, last October, foresee that Safilo can score in the next three years a net recovery in terms of Ebitda, compared to about 7 million expected in 2018.
In fact, the operating result should rise to around 38 million next year and to 29 million in 2021 also assuming the non-renewal of the Dior license after 2020, offset by a recovery in efficiency. This means that the stock, which currently is about 7.2 times the EV / Ebitda expected for 2019 and about 7.9 times compared to the estimates for 2021, after the increase will see the multiples fall to 5.8 times the 2019 values and 6.1 times the values 2021.
The capital strengthening should be accompanied by a new extension of the € 150 million revolving credit facility whose maturity had already been brought from 29 July to 30 November next, but at the moment there is no certainty about it. As Moody’s had already mentioned, Safilo’s problem is that almost all the group’s debt will expire within the next year and the group could have liquidity problems if it could not agree with the renewal banks for another 4.5 years. about the previously mentioned revolving credit line.