Shares in Davide Campari-Milano saw a decline following the announcement of a successful capital raise. The Italian distiller revealed that it raised 1.2 billion euros ($1.31 billion) through a discounted share offering and the issuance of convertible bonds.
As of 0945 GMT, shares were down 5.3% at EUR9.40.
The company placed new shares at EUR9.33 each, representing 5.6% of its issued and outstanding ordinary share capital. This price is lower than the closing share price on Tuesday, which was EUR9.93.
Davide Campari-Milano intends to utilize the proceeds from this capital raise for its planned acquisition of Beam Holding France. The acquisition, which is valued at up to $1.32 billion, includes the renowned Courvoisier cognac brand.
Equita analyst, Paola Carboni, noted that this move would provide Campari with increased financial flexibility. It would also potentially open doors for future acquisitions. Carboni stated in a research note, “According to our calculations, the acquisition in the short term would have brought leverage close to the levels that management considers as a ceiling.”
