Clariane slumps as financing plan implies big dilution

Clariane SE

14/11/2023 10:01

** Shares in Clariane  CLARI.PA  fall 12% after the French
care home operator unveiled a plan for asset disposals and a
capital increase to refinance its pile of debt, which AlphaValue
analyst says would mean "massive dilution" for shareholders
    ** It plans to divest assets worth around 1 billion euros
($1.07 billion) next year as part of a 1.5 billion euro plan to
"restore its access to financing" from 2024, which also includes
a 300 million euro capital increase
    ** Clariane says it is in talks with lender Credit Agricole
 CAGR.PA  to raise 140 million euros through a real-estate deal
and for a new credit line of 200 million euros
    ** Yi Zhong from AlphaValue says the entry of Credit
Agricole Assurances would make the group more "mission-driven",
given that Clariane has turned itself into a so-called
"mission-driven" company
    ** "This would allow a positive impact on the ESG topic but
might weigh on Clariane's short- to mid-term profitability," the
analyst adds
    ** Shares are on track for worst day since Oct. 26
    ** Including Tuesday's fall, the stock has dropped by nearly
70% YTD
($1 = 0.9348 euros)

 (Reporting by Lina Golovnya)
 ((lina.golovnya@thomsonreuters.com))