Bakery firm Aryzta has confirmed its plans to raise €800 million in equity, reports the Irish Independent.
The paper reported Gary McGann, Aryzta chairman, as saying that the business is putting forward a plan to be implemented over several years, that is "in the best interest of all Aryzta stakeholders"
Last week, the company reported a full-year loss of €470 million as distribution and labour costs hurt the Swiss-Irish baking giant.
Shareholder Cobas Asset Management is opposing the move, according to the report.
Debt Repayment
The funds will be used to repay debts, provide additional working capital, and also fund the group’s ‘Project Renew.’
McGann further emphasised that if it doesn't implement this strategy, it will not be possible to bring the company back on a profitable growth path.
"In the absence of an €800m capital raise, Aryzta will be unable to fully implement this plan, put the business back on a profitable growth path and rebuild value for all shareholders," he told the paper.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
