DIA Group successfully completes €1,028m capital increase with the majority support of the shareholders

August 5, 2021

DIA Group successfully completes €1,028m capital increase with the majority support of the shareholders

The second tranche of the capital increase, of €259m and intended primarily for minority shareholders, has been oversubscribed with demand exceeding the offer by 1.67 times.

The success of the operation demonstrates the confidence of shareholders in the decisions being taken by management and their support for the company’s future project.

The new capital from the transaction will be used to accelerate the transformation plan.

Las Rozas de Madrid (Madrid), 4 August 2021. The DIA Group has successfully completed the capital increase process for a total of €1,028 million. Of this amount, €769 million corresponds to the conversion by LetterOne of the company’s debt into equity, and a further €259 million corresponds to the cash tranche of the capital increase, initially aimed at minority shareholders, in which all of the 12,927,555,100 new shares of this tranche have been subscribed.

The demand for the cash tranche exceeded the supply of the new shares offered by 1.67 times. This represents a total demand of approximately €433 million.

The transaction provides the Company with an optimal capital structure, represents a new injection of liquidity that will accelerate the DIA Group’s transformation process and eliminates the negative equity situation in which the company found itself, thus preventing it from incurring legal dissolution.

Stephan DuCharme, Executive Chairman of the DIA Group on the deal

“The successful completion of the capital increase clearly demonstrates the confidence that the DIA Group’s project is generating among all its stakeholders. I would like to thank all shareholders, both existing and new investors, for their support of this process, especially in the second tranche. The company will now be able to focus exclusively on the development of its business, which has already begun to bear fruit”.

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Distribuidora Internacional de Alimentación is a leading network of neighbourhood supermarkets, with close to 6,100 company-owned shops and franchises in Spain, Portugal, Brazil and Argentina. With the commitment of its more than 39,000 employees worldwide and its mainly local suppliers, DIA offers the best offer and the best service to its more than 20 million customers.