Econocom and its banking partners have finalised an
agreement to reorganise the financing scheme put in place for the
purpose of acquiring former Société Générale subsidiary ECS Group
in October 2010.
The agreement speeds up Econocom Group’s debt
reduction and allows for an early repayment of a €40m bridge loan,
thereby cancelling a capital increase plan.
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The repayment of this bridge loan comes after
Econocom made an early repayment of €40m on a €132m syndicated loan
at the end of March 2011.
Econocom chairman Jean-Louis Bouchard said: “This
resizing of our financing, which was made possible by the positive
development of ECS Group, whose working capital requirements have
been radically reduced since its acquisition in October 2010, means
we can optimise the group’s financial costs, and will be welcomed
by our shareholders, as there will be no share dilution resulting
from a capital increase.”
As part of the agreement, Société
Générale will give back to Econocom a total of 890,000
shares.
Group finance director Olivier Aldrin said: “This is
due to a price reduction following the final price calculation done
at the beginning of 2011.”
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By GlobalDataclaire.hack@vrlfinancialnews.com
