Eramet pushes €500M raise as Duval mulls stake sale
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- Eramet is pushing a €500M ($583.80M) capital increase announced in February to shore up cash after a slump in earnings and a jump in debt last year
- The Duval family, Eramet's largest shareholder with 37%, has appointed Lazard to explore options for its stake ahead of the capital raise, per a Financial Times report
- Eramet confirmed the Duvals' adviser appointment but called it 'standard practice' in the context of a capital increase, and said main shareholders have reaffirmed support for the funding plan
- Eramet shares rose 3.6% by 1406 GMT, having climbed by more than 7% earlier in the session
- The company faces compounding pressure this year from a sharp cut to its permitted nickel mining volumes in Indonesia, a halt to mineral sands output in Senegal after a fire, and a management crisis that saw CEO Paulo Castellari fired and finance chief Abel Martins-Alexandre suspended within days of each other in February
- France's state shareholding agency APE, Eramet's second-largest shareholder with 27%, declined to comment
- Terms of the capital increase are due to be announced ahead of the miner's annual shareholder meeting next month
Why it matters: The Duval family's potential exit lands as Eramet reels from Indonesian nickel volume cuts, a Senegal fire, and a February purge of its CEO and finance chief. With the French state agency APE (27%) silent and shares volatile (up 7% then 3.6%), the raise's success hinges on whether remaining shareholders anchor it — raising fresh dilution risk.
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