OHLA - comment
The latest iteration on the equity raise would be positive for creditors, but there is a long way to go. We doubt the banks will release the collateral until €150m of cash is in the door. The possibility of an Amend and Extend operation remains. The OHLA board now has one offer to underwrite a cash raise it must complete. The potential new investors are insisting on improved governance, which will likely mean the Amodio family giving up some control. José Elías has now teamed up with Andrés Holzer (a Mexican investor and ally of the Amodio) and offered to underwrite the €75m of the €100m equity raise. If existing shareholders take up their rights, the pair will invest a further €50m. Dilution of existing shareholders is inevitable.