Teraplast reveals dates for the increase in share capital. This refers to a share capital increase by issuing 222,200,000 ordinary shares with a nominal value of RON 0.1, implying an increase of RON 22.2m in the share capital. The share capital increase represents 10% of the current share capital. In case TeraPlast will not be able to cover the whole increase in the first phase, there will be a second phase. The second phase includes a private placement. The subscription price for the first and second phase is yet undisclosed. The subscription will take place after the Romanian Financial Supervising Authority’s approval. The 2nd phase represents an opportunity for new investors to enter Teraplast’s shareholder structure.
Teraplast has a tradition of over 125 years and is currently the largest polymer processor in Southeast Europe, the production is carried out in three locations in Romania, two in Hungary, and one in the Republic of Moldova while the distribution is supported by 7 own distribution centers. In 2024 Group expects a high double-digit improvement in the top line, operating profitability & bottom line. Besides the stabilization on the operating level, expected growth should be amplified by the recent acquisitions – Plaplast & Freiler Group.
Teraplast & BET price development (2020 – 2024 YTD)
Source: Bloomberg, InterCapital Research
On Friday, Teraplast notified the details regarding the increase in share capital by issuing 222,200,000 ordinary shares with a nominal value of RON 0.1/share, by granting preferential rights to Teraplast existing shareholders registered in the shareholders’ register on 16 July 2024 (Registration Date), while the ex-date is set for 15 July 2024. This represents an opportunity for new investors to enter Teraplast’s shareholder structure. The share capital increase represents 10% of the current share capital. Also, preference rights are not tradable.
Going into a little more detail regarding these phases, in phase one, all the shareholders holding the Company’s shares as of 16 July 2024 (registration date) will be offered new shares for subscription from this share capital increase. To subscribe for one new share, each shareholder must hold 9.806482259225923 preference rights. The total number of preference rights issued will be equal to the number of shares issued by the Company, as registered on the registration date. As such, this was designed to give the existing shareholders the ability to participate in the share capital increase first (and as such, preference rights). Not to experience a diluting effect, the current shareholders on the registration date will have to subscribe to the entire 222,200,000 shares.
Moving on, during the second phase, any unsubscribed new shares in the first phase shall be offered via a private placement to investors that will be determined through a book-building process, depending on the interest of the investors. The share capital increase represents 10% of the current share capital. At the current market price, this would amount to an increase of EUR 25m (RON 123m). The purpose of the capital increase is to finance the company’s development plans and support further M&A activity.
