The French contact lens manufacturer Essilor said on 22 January that it was offering to convert preferred non-voting shares into common shares on the basis of one common share for one non-voting share…
The French contact lens manufacturer Essilor said on 22 January that it was offering to convert preferred non-voting shares into common shares on the basis of one common share for one non-voting share plus FFr 125 in cash. “If all holders of preferred non-voting shares tender their shares for conversion, shareholders“ equity will be increased by around FFr 200 million,” it said in a statement. Essilor said France“s Saint-Gobain, which holds 22% of the preferred non-voting shares, plans to tender all of its shares to the offer. Saint-Gobain already has a 21% stake in the lens maker and owns around a quarter of Valoptec, another company which holds a 17.4% stake in Essilor. Essilor said in its statement that the new common shares would carry rights to the 1996 dividend. “In exchange for the loss of the preferred dividends, holders of preferred non-voting shares will gain the right to vote at shareholders“ meetings,” it said. The transaction will be carried out through a simplified public exchange offer. The move, approved unanimously by Essilor“s board, has two objectives – to boost equity and to offer holders of non-voting shares access to the common share market with its greater liquidity, Essilor said. An extraordinary shareholders meeting and special meetings of holders of preferred non-voting shares and convertible bonds will be held on 3 March. A spokesman for Saint-Gobain said he had no comment on a market rumour the company might be planning a buy-out offer for Essilor.