PARIS, April 20 (Reuters) - Eramet said on Thursday it could talk to new investors about taking part in a 500 million euro ($585 million) capital increase that the struggling French mining group is
Eramet Considers New Investors, Asset Sales to Support €500M Capital Increase
Eramet's Capital Increase Plans and Financial Strategy
Potential New Investors and Capital Increase Details
PARIS, April 20 (Reuters) - Eramet said on Thursday it could talk to new investors about taking part in a 500 million euro ($585 million) capital increase that the struggling French mining group is planning for later this year.
Background on Capital Increase and Asset Sales
• The nickel, manganese and lithium producer said in February it was planning a capital increase, as well as asset sales, to shore up cash after a slump in earnings and a jump in debt last year.
Discussions with Potential Investors
• In a first-quarter sales statement, Eramet said "discussions may be held with potential investors who could participate in the planned capital increase".
Shareholder Approval and Timeline
• It reiterated that the capital raise was planned for the second half of the year subject to approval at the company's annual shareholder meeting next month.
Financial Position and Portfolio Review
Lender Waivers and Debt Covenants
• Eramet has also obtained from its lenders a waiver on June and December 2026 gearing covenants, it said.
Asset Sales and Portfolio Review
• Eramet is also continuing a review of its portfolio with a view to asset sales this year, with the sale of minority stakes in some businesses notably under consideration, it said.
First-Quarter Sales Performance
• The group reported a 13% year-on-year rise in first-quarter sales to 840 million euros.
Exchange Rate Information
($1 = 0.8543 euros)
(Reporting by Gus Trompiz; Editing by Lincoln Feast.)
