Duro Felguera must now enter a phase of “growth and expansion,” the company’s CEO, Jaime Argüelles, told this newspaper yesterday. The group will not wait for the ordinary meeting in June to approve the capital increase that will allow the entry of Mexican investors Prodi and Mota-Engil, who may take up to 55% of the company (the minimum will be 31%). Argüelles maintains that the acquisition of the two shareholders is “good for everyone.”
– How do you assess the agreement reached with Mexican investors?
–We are very happy with the result achieved and also very excited. We also feel a responsibility to make it real and move it forward. We have to take advantage of this opportunity that was given to us, first with public aid and now with the incorporation of new shareholders. Public aid gave us time to do our homework and to achieve this opportunity, and now we have to take advantage of it and consolidate it from within after a period of suffering and in which the resilience of our workers was revealed.
–Do you anticipate that the strengthening of shares will contribute to the expansion of the company?
–We went from survival to consolidation and now we have to enter a phase of growth and expansion. It’s time to do it. The solution does not come because money enters us, because money is fleeting, but because we make good use of it. We have to transform the way we work, optimize our procedures and use the talent of people to provide solutions, which is the company’s greatest value. Therefore, it is necessary to value Duro Felguera and increase the level of activity.
Are you afraid that there may be difficulties?
in authorizations?
We hope there aren’t. We have had and are having conversations with interest groups and we hope that everything will go ahead. Shareholder approval is key and that is why we have made an effort to give them subscription options and we have reserved a tranche of 40 million for them in the capital increase.
– Do you expect the CNMV to grant the exemption so that new investors do not have to launch a takeover bid on the total capital?
I don’t know how many cases have already been authorized. It is not a very common practice and certain demanding requirements are required. Our expectation from a legal point of view – and investors believe the same – is that we meet them.
How did you attract investors? Was it direct management or did the advisors intervene?
We did a very intense and extensive search. We connected with them over a year ago. It was produced by the contacts that Duro people have and we also resorted to external advisers. It was a very professional process. And we see growing investor interest in Duro as we continue to search. The market appreciated the good trend of the company.
– Do Prodi and Mota-Engil match the profile you were looking for?
-Yeah. We were looking for reference investors who would generate more confidence in Duro among clients and financial markets, reinforce liquidity and generate synergies and increase contracting. That is why we were looking for an industrial investor profile with a vocation for long-term permanence.
Will there be synergies in markets and business lines?
-Yeah. Mota-Engil and Prodi are in fuel, infrastructure, energy, transport and other activities. The energy transition is an opportunity and both groups have this perception, which we can take advantage of. With them we will be able to further strengthen our presence in Mexico, and in Latin America and North America in general. Mota-Engil is in Africa, which is another way of growth. The US is bringing part of its production chains from China to nearby markets and Mexico is emerging as a great option. We see many possibilities for growth.
Will you wait for the ordinary meeting in June to hold the extraordinary meeting that must approve the capital increase or will you anticipate it?
–Our idea is to speed it up and not wait for June, although it does not depend on Duro because it is conditioned by authorizations and procedures. We cannot specify it, but it can last 3 or 4 months. We are interested in it being as soon as possible.
–Will they achieve the necessary “quorum”, given the great fragmentation of current shares?
-This is important. We hope there is. And that it be well received by shareholders, who have gone through so many difficulties, and who know that there are still challenges.
– Will the loans for 90 million that investors will grant in the first instance until their capitalization be formalized imminently?
–It will be before the capitalization, but some requirements for legal guarantees must first be met.
–Does the bank view the agreement with the Mexican groups well?
–Your agreement is needed, but we think you will see it with good eyes. It is a very good operation for everyone and we hope that the banks also see it that way. And it will give financial robustness to the company.
How is the activity going?
–We are happy with 2022 despite the fact that the first semester was affected by the war, inflation, the crisis of raw materials and the lack of guarantees. In 2023 we have entered with a good dynamic.