The operation is complex, as almost everything that has to do with Abengoa in recent times. The conflict part of claims of a group of shareholders, led by Corporate Investment, which control in 3% of Abengoa, which includes nearly 300 shareholders, between m, Felipe Benjumea, president. They assured in a statement Tuesday that it wanted a meeting of shareholders extraordinary to find solutions and to prevent ir shares will be diluted with entry into force of a regulation of Exchanges and Markets of Spain. In reality, what y want is to pass a division of value of ir actions that allow m to give a slip to new standard, placing price in supported minimum and shielded so of downs.
The origin of everything is entry into force on September 28, standard made public on 30th of July by stock Exchanges and Markets of Spain (BME) for all listed companies in Spain. Until now minimum price of shares of a listed company in Spain is eur 0.01, that is to say, a penny. And although investors want to sell, as titles can not be negotiated lower prices, few purchase orders and bulk of sales are in practice blocked. The titles never go below a penny. The Society of Spanish stock Exchanges announced that from 28th of September, was reduced in Spain to 0.001 euros, minimum price quote, in order to contribute to “proper formation of prices”. That is to say: that if investors sell or buy cheaper, do it and price is not artificial.
The shares of Abengoa B, which have shareholders that have forced convening of an extraordinary general meeting on 2 October, are precisely in soil of eur 0.01 (one cent) from April. So, no matter what, can not lose re. When it enters into force new minimum price, y may do so, and lose that armor. Therefore, solution proposed by investors to ir securities are protected from desires of market, is to do a split: a division. Want that one of its shares valued at eur 0.01 will be converted into 10 shares of 0.001 euros. So, will continue to have, on whole same investment, and will continue to be protected by minimum price that sets new standard of 0.001 euros.
MORE INFORMATION
- Abengoa completes sale of its u.s. subsidiary to canadian Algoquin
- The judges admitted to processing demands necessary bankruptcy of two subsidiaries of Abengoa
- The State emerges a share of 3,15% in Abengoa
- The National court absolves excúpula of Abengoa for payment of compensation worth millions
Order of day on board
All se details, that yes, investors who requested extraordinary general meeting not explained in his statement sent to press. In note is limited to say that demanded an extraordinary general meeting to take decisions and to avoid that y affect a measure “that would represent a dilution of action of 90% that, added to dilution of 95% already suffered in 2016 during restructuring process, would, in practice, total disappearance of investments made”. With that, y seem to take it for granted that if price of shares cotizase freely, would fall by 90%. As investors that were proposing to hold a board have more than 3% of capital, ir wishes have been necessarily heard, and extraordinary meeting of shareholders convened for 2 October.
According to order of day of that meeting, calling for ” approval of a split of Shares of class A and B representative of share capital of Abengoa SA, with attribution of ten (10) new Shares for every one (1) former, with consequent adaptation of nominal value of same, in order to avoid damages derived from new value of minimum contribution set by stock Exchanges and Markets”. And, in addition, that board of directors, ask for a suspension of quotation to which this division comes into force. So y are not exposed to ir titles fall into Bag below a penny when down ground to 0.001 euros.
Notice resounding of securities and exchange commission
After publication of agenda of extraordinary general meeting this Wednesday, Abengoa has been made public on regulator to stock a letter sent to own securities and exchange commission, where he warns that claims of se shareholders can be expensive. The agency explained in detail reasons why y changed rule to reduce minimum price of any stock listed to 0.001 euros. Basically, have soil in a penny causes ” conduct of operations at a price not free,” “Transmission of misleading signals to market about supply, demand and price of corresponding value”, as well as ” fixing of a price at an artificial value”.
The securities and exchange commission warns that re are companies, such as Abengoa, where y are proposing to split shares to reduce ir value to new minimum price. “In event that accepted such initiatives, which would prolong current situation of negotiation of order and fixing of prices at levels artificial, CNMV will assess in your time if conduct could constitute a case of market manipulation”, spear. In addition, he says, “will assess possibility to exercise powers that law gives to guarantee free formation of prices and integrity of negotiation, including suspension or exclusion from trading of relevant securities, as well as challenge of relevant corporate agreements”. And he asks that this letter be transmitted to shareholders, when voting in a shareholders ‘ meeting, to know what y are facing.
Urbas, also warned for trying to circumvent rules
The actions B of Abengoa are not only ones in Spanish Stock market that are worth 0.01 euros minimum that now allows law, that is going to change to 0.001 euros on 28th of September. Urbas is in same situation that Abengoa and is expected to be submitted to a vote at a meeting same triquiñuela: an unfolding of actions in order that each title becomes ten, it is worth 0,001 € and not be able to lower price. In your case, shareholders meeting is scheduled for 8th of September. They have also received a notice from national securities market commission on consequences of such an operation, which can lead to m being accused of market manipulation and even to be excluded from Stock exchange. The regulatory stock, in addition, requested that its shareholders are informed of risks, but on contrary that Abengoa, at least until night of this Wednesday, re had been no official communication through a relevant fact.
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