Introduction#
Shares of Worldline, a French payments company, experienced a significant increase of over 17% on Friday. This surge follows the company's announcement of a €392 million capital raise through a rights issue, which allows existing shareholders to buy additional shares at a discounted price.
Details of the Rights Issue#
The rights issue was launched on Thursday and took effect on Euronext Paris the following day. This process involved detaching preferential subscription rights from the stock, which reset the reference price and amplified the percentage change compared to the previous day's closing price. Shareholders can subscribe to six new shares for every one they currently hold, at a price of €0.202 per share. This price represents a substantial discount of 85.8% compared to the share price before the detachment.
Shareholder Participation#
Three major shareholders have committed to participating in the rights issue: State investment bank Bpifrance, Crédit Agricole, and BNP Paribas. They hold 9.6%, 9.5%, and 7.9% of the company, respectively, and have agreed to exercise their rights proportionately. Additionally, they have provided a backstop commitment of up to €29 million in total to support the capital raise.
Use of Proceeds#
Worldline plans to use the funds raised from this rights issue to strengthen its balance sheet and support its North Star 2030 plan, which aims to return the company to growth and enhance cash flow generation. The new shares issued will also carry full dividend entitlement from the date they are issued.