US Stocks: Eramet reaffirms shareholder support for capital hike as Duvals hire adviser
Why it matters: Eramet's 500 million euro capital increase is crucial for its financial stability amid significant operational challenges.
- Eramet is proceeding with a 500 million euro capital increase and asset sales to address a slump in earnings and increased debt.
- Eramet's spokesperson confirmed main shareholders 'reaffirmed their support' for the funding plan and that the Duval family had appointed an adviser, calling it 'standard practice'.
- The Financial Times, citing sources, reported the Duval family (Eramet's largest shareholder with 37%) hired Lazard to explore selling its stake.
- Eramet shares rose 3.6% after the news, having climbed over 7% earlier in the session.
- Eramet faces ongoing pressure from lower manganese prices, reduced nickel mining volumes in Indonesia, and a halt to mineral sands output in Senegal.
Struggling French miner Eramet is moving forward with a 500 million euro capital increase and asset sales to shore up cash, despite a Financial Times report suggesting its largest shareholder, the Duval family, is exploring selling its 37% stake. While Eramet reaffirms full shareholder commitment, the Duval family has hired Lazard to advise on its options, which Eramet dismisses as 'standard practice' ahead of a capital raise.
