Privé Revaux – the majority of the U.S. eyewear brand has belonged to the Safilo Group since the beginning of 2020, as it did with the U.S. brand Blenders; in order to be able to complete these acquisitions in time, the Italian group had taken out a loan, which is to be repaid with the planned share capital increase this year (Image: Safilo)
An extraordinary shareholders’ meeting of Safilo Group on July 30 approved a share capital increase within the limits of the maximum amount of 135 million euros. The purpose is to repay loans from 2020 and enable further investments.
The Extraordinary Shareholders’ Meeting of Safilo Group S.p.A. has approved a share capital increase, against payment and divisible, up to a maximum amount of 135 million euros, including any share premium, through the issue of new ordinary shares without par value.
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In doing so, the Board of Directors had been given wide-ranging powers to determine the timeframe for the implementation of the resolution to increase the share capital, in compliance with the deadline set by the Annual General Meeting, which is April 30, 2022.
In the run-up to the launch of the offer, it would be necessary to determine the final amount of the share capital increase within the limits of the maximum amount of 135 million euros, to determine the issue price of the newly issued shares and thus the portion of the issue price to be allocated to the capital reserve, if any, and to determine the maximum number of newly issued shares and the ratio of allocation in option.
Safilo: Repayment of a 90 million loan
The capital increase would primarily serve to repay a loan of originally 90 million euros plus corresponding accrued interest granted to Safilo in two tranches in 2020 by Multibrands Italy BV, a subsidiary of HAL Holding NV and Safilo’s main shareholder, to support the timely completion of the acquisitions of Blenders Eyewear and Privé Goods.
Safilo acquired a majority stake in US brand Blenders Eyewear at the end of 2019 (Image: Safilo)
It is also expected to strengthen Safilo’s capital structure and future investment opportunities.
Subject to corporate and regulatory approvals, Safilo intends to complete the transaction as soon as possible in the second half of 2021.
