Troubled Swiss-Irish food group Aryzta has published the final terms of its €800m cash call ahead of its AGM today.
The company will propose to increase its share capital through the issuance of 900,184,940 new registered shares with a nominal value of CHF 0.02 (€0.018) each.
The new registered shares will be offered to existing shareholders at a price of CHF 1.00 (€0.88) per share.
If approved by the AGM, existing shareholders will receive 10 rights to pre-emptively subscribe for new registered shares for each registered share they hold on 6 November 2018.
Aryzta, whose CEO is Kevin Toland, plans to use €500m of the equity raised to repay an existing term loan, with €150m earmarked for its Project Renew plan designed to generate cost savings and introduce efficiencies.
However the proposal has been met with opposition by Cobas Asset Management, Aryzta’s largest shareholder.
Last month Cobas said that Aryzta would likely fail in its efforts to secure investor approval to raise the €800m.
In a damning missive, it claimed that the embattled food group was painting an "unduly grim picture" of its current situation "with the sole intent to convince shareholders to support the excessively large and dilutive capital increase".
It added: "Based on our conversation with the largest shareholders, we deem a vote against the capital increase of €800m at the upcoming AGM as likely."
Cobas controls almost 15pc of Aryzta.
Aryzta’s board of directors has unanimously recommended that shareholders vote in favour of the capital increase resolution at the AGM.
More to follow