Aryzta's €800m cash plan facing investor challenge
Swiss-Irish baked goods firm Aryzta is facing a challenge to its plans to raise €800m in equity next month after its largest shareholder said it will offer alternatives to the scheme.
The move is designed to repay debt and finance investment to achieve operational efficiencies and savings.
Cobas Asset Management which owns almost 15pc of the Cuisine de France maker, claimed Aryzta does not need to raise as much cash from shareholders.
It made the statement after Aryzta, headed by CEO Kevin Toland, posted full-year results that showed a stabilising business after more two years of turmoil.
"This morning's news confirms that the company does not require such a highly dilutive capital increase," said Cobas.
It added that it will make an alternative proposal to the company and shareholders either through the company's board or via an extraordinary general meeting.
"Principally we endorse the intention to strengthen the balance sheet of the company," it said. "To that effect we are reviewing alternatives that will improve upon the company's proposal."