Spain's Dia Close To Sealing €200m Funding Deal
Spanish food retailer Dia soon expects to reach a deal to refinance its banking debt, the company has reported.
The deal, to be sealed by the end of May, should provide the low-cost supermarket chain with much-needed new liquidity worth about €200 million, it reported in a statement.
The information comes two weeks after Dia entered into a standby underwriting commitment with Morgan Stanley, under which the bank will buy the troubled retailer's shares for an amount of at least €600 million, once shareholders approve a planned capital increase.
Change Of Leadership
The company also announced the decision to appoint a new chief executive officer, with director Borja de la Cierva replacing Antonio Coto, effective immediately.
Earlier in December, all the representatives of Dia's biggest shareholder, LetterOne, resigned from its board of directors.
Dia, which earlier this month dropped out of Spain's blue-chip index, IBEX 35, also confirmed that it is contemplating the sale of businesses Clarel and Max Descuento (cash and carry), as they are not part of the core business.
Dia shares, which have shed almost 90% of their value this year, jumped after trading resumed on Friday afternoon.