Duro Felguera cleared its future yesterday with the approval, with a support of more than 98% of the present and represented capital, of the capital increase that, for an amount of 90 million, will reinforce the solvency and liquidity of the group, will provide it with greater capacity to compete in international markets and will provide -for the first time in six years- reference shareholders, with the incorporation as hegemonic partners of the Mexican industrial investors Prodi and Mota Engil Mexico, the latter with a majority of Portuguese shares. Both groups, which will act in concert within Duro Felguera, will add at the end of the process a stake in the company’s capital of between 31% and 54%: the range will vary depending on how many current shareholders exercise the right of preferential subscription of the tranche of the increase that has been reserved for them. The two partners agree to spend a minimum of four years in Duro’s shareholding, although their desire is for a long-term stay.
According to Rosa Aza, president of Asturian engineering, the operation represents “the definitive solution for the company”, immersed in difficulties since 2017, and constitutes “a key moment for the future and a turning point in history”. Jaime Argüelles, the company’s CEO, stated that the entry of Prodi and Mota-Engil into its shares and the consequent contribution of resources is “an essential operation” and “a historic decision”, which will make it possible to make “a robust, solid company and sustainable” and fulfill an “ambitious but feasible business plan” to reach and exceed 1,000 million in turnover in 2028. “Duro Felguera is already on the path to become a leader again” and to “return to being what it should never have to stop being, and to be even more so,” said Argüelles.
Both said that the expansion is good for the company, shareholders, suppliers, customers, workers and financial institutions. The “massive support” of the shareholders present corroborates, said Argüelles, that it is a “good achievement for all”
The announced generation of business through synergies and collaboration with the next two reference shareholders is already beginning to materialize. Although their entry into the capital is not expected to take place until this summer – which is when the expansion is expected to be completed – Duro, Prodi and Mota-Engil are already analyzing possible projects to be undertaken jointly in America and Africa, where the two investor groups They have extensive experience and implementation. And, as soon as the last pending permits are obtained, both groups will provide two separate loans to Duro Felguera for a total amount of 90 million to provide liquidity to the group: Prodi will make a loan for 50 million and Mota-Engil México for 40.
With an attendance quorum of 32.562% of the capital (the legal minimum required was 25%), the proposal of the board of directors required the support of at least 66.66% of the shares present or represented so that it could be approved. In the end, the two consecutive extensions in which the operation is articulated achieved support of more than 98%. Among the shareholders present was TSK, an engineering firm from Gijón, owner of 3.124% of Duro, which contributed to achieving the participation required by law and by the company’s bylaws.
The first of the two capital increases will be made for an amount of just over 39.83 million through the issuance of 52 million new shares at 0.7661 euros per title. It will go to the current shareholders and with it the loan granted to Duro by Mota-Engil México will be paid, plus the accrued interest. The part that is not acquired by the current owners of Duro will be subscribed by Mota-Engil México, which would reach a maximum of 24% of the company if no pre-existing shareholder bought new shares. This extension with preferential subscription rights for partners was approved with 98.15% of the votes. The vote against added 0.096%; abstention 0.87% and blank vote, 0.88%.
The second increase, for just over 50 million, to reach the 90 million expected in total, will be signed by the Prodi group by capitalizing the loan previously granted to Duro for the same amount and the part of the Mota-Engil credit that has not been returned with the first enlargement. This operation will give Prodi control of 31% of Asturian engineering. This second extension was supported with 98.023% of the votes. 1,178% voted against; 0.79% abstained and 0.0059% voted blank.
The ratification as external director (and not executive, as initially stated) of María Jesús Álvarez González, Economic-Financial Director of the State Company for Industrial Participations (SEPI) and one of the two representatives of this public group on the board of Duro since the state rescue of the company in 2021, it was approved with a support of 94.64%, the rejection of 1.81%, the abstention of 2% and the blank vote of 0.72%.
The general meeting was attended by 661 shareholders, of which 379 did so in person and 282 by proxy.
Roza Aza and Jaime Argüelles highlighted the improvement in the evolution of the group’s results since 2020 in contracting, order book and gross operating profit. The president announced the obtaining of certifications by AENOR in terms of regulatory compliance, good practices and anti-bribery measures, as well as the reinforcement of internal codes of conduct and corporate governance, as well as risk controls “so as not to repeat mistakes of the past”, referring to the time when some large contracts resulted in losses, defaults and litigation. The company is making progress in resolving many of them, according to Argüelles, as well as reactivating projects such as those in Iernut (Romania) and Djelfa (Algeria).
Duro maintains the commitment, already announced last month with the review of its feasibility plan, to reach 1,100 million euros in annual contracting in 2028 (triple that in 2022 and 13 times the figure for 2020), make sales in that date by 1,015 million (it will mean multiplying by eight the volume of last year and by twelve that of 2020), reaching a gross operating result (“ebitda”) of 95 million (19 times that of the last year) and a net profit of 64 million (13 times that of 2022). The intention is to reduce the gross debt by 90 million in four years and leave it at 54 million at the end of 2028.
The group promotes its future R+D+i center in Gijón to position itself at “the frontier of knowledge”
Duro Felguera is advancing in the conception of its future research, development and innovation (R+D+i) center, which will be located in the Gijón Science-Technology Park, where the company also has its headquarters. The project will be carried out in collaboration with IDEPA and will specialize, according to the group’s CEO, Jaime Argüelles, in the double energy and digital transition. Currently, “the projects to be carried out are in the definition phase,” said the company’s chief executive, and the teams and structure have not yet been outlined. The president of the organization, Rosa Aza, judged the project as “essential to be at the frontier of knowledge and innovation.” The group maintains the will to take growing positions in energy (storage, green hydrogen, ammonia, methanol, biofuels, offshore wind…), reinforce its weight in intelligent systems and persevere in the industrial business (plants and services), as well as its presence in conventional energy, with more than 26 gigawatts installed in the world) and industrial services.