Eramet launches c. €500 million rights issue to cut debt

what happened

French metals and mining group Eramet has announced a share capital increase of about €500 million with preferential subscription rights for existing shareholders, according to the company's press release distributed via GlobeNewswire. The offering will issue 34,506,054 new shares at €14.49 each, on a ratio of 6 new shares for every 5 existing shares.

Reuters reported that the Agence des Participations de l'Etat (APE) has committed to subscribe for roughly 64% of the issue, about €322 million. A syndicate of banks will underwrite the unsubscribed portion. Rights will trade from 16 to 25 November 2026, subscriptions run from 18 to 27 November, results are due 2 December, and the new shares are set for settlement and admission on 4 December.

The company said the net proceeds will go toward reducing its debt and ensuring compliance with bank covenants, as part of a previously announced plan to improve cash generation.

why it matters

The subscription price is 42.94% below the theoretical ex-rights value of the share and 62.34% below the 11 November close of €38.48. A deep discount and a larger share count mean dilution for existing holders, so pressure on Eramet's stock in the coming weeks is likely. The state's larger stake is also a factor for investors to watch.

market impact

Eramet shares: deep-discount issue and dilution weigh on the stock price

• ▼Eramet shares pressure down — deep-discount share issue dilutes existing shareholders

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instruments