By John Smith • Published: 25 Mar 2021 • 13:43
More shoppers have helped DIA reduce losses Credit: Dia Twitter
SPANISH supermarket group DIA announced on Thursday March 25 that it has agreed to convert debt owed to its main shareholder LetterOne into equity.
It intends to offer new shares to existing shareholders worth €1.028 billion of which the bulk will be converted from the debt of €769 million it owes to Luxembourg based LetterOne which is owned by Russian billionaire Mikhail Fridman.
The balance of shares valued at €269 million will be offered to other shareholders and replaces an earlier plan to convert just €500 million of debt to equity.
The supermarket chain continues to operate at a significant loss although its 2020 figures showed that the loss more than halved compared to the previous year at €364 million thanks to a significant increase in purchases during the state of alarm.
It now hopes with a significant reduction in debt and with the support of its shareholders that it can follow its roadmap to return to profitability especially as it now has no significant debt repayments due until 2025.
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Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Currently he is acting as Editorial Consultant for the paper helping to shape its future development. Share your story with us by emailing newsdesk@euroweeklynews.com, by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews
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