LetterOne's Tender Offer For DIA Creates Uncertainties For Creditors: Moody's
Ratings agency Moody's has said that it believes that LetterOne's tender offer for Spanish retailer DIA, announced earlier this week, could create 'uncertainties' for the group's creditors.
If successful LetterOne's offer, which would require the acceptance of shareholders holding at least 35.5% of DIA shares, would support a €500 million capital increase for DIA provided it first reaches a satisfactory agreement with DIA’s banks.
'Although a capital increase would strengthen DIA’s credit ratios, we believe the limited information that is currently available on LetterOne's future negotiations with DIA's banks and its intention with regards to the retailer's future capital structure create uncertainties for creditors, a credit negative," Moody's said in s statement.
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