The Catalan Parlem, facing a change of hands

BarcelonaCountdown to the end of the Parlem series. On Friday, August 7, the telecommunications company will organize an extraordinary meeting of key shareholders for the future of the Catalan company. Three points will be discussed: an imminent debt capitalization, a capital increase, and the entry of six new members into its leadership. The approval of these three points would mean a change in the shareholding majorities of the teleco and, as ARA has been able to find out, everything indicates that this will be the case.

On the first point of the day, Parlem shareholders will have to decide whether to accept the creditor Inveready's proposal to convert a debt of 17.5 million euros into shares. As this media outlet had already explained, in recent months, several loans made by Inveready and other related companies came to mature in the short term after different financial ratios established in the financing contracts were breached during the previous fiscal year (covenants).

This cast doubt on the liquidity of the Catalan, which would currently be unable to return the discovery. According to sources close to the Catalan management, the conversion of this debt into shares would leave Inveready's stake in the shareholding between 45% and 49%. At the moment, there is no alternative that allows shareholders to vote against this conversion, even though the company's current management has been working in recent months to find some other solution.

With the approval of this capitalization, the creditor Inveready – which currently already holds 8% of Parlem's shares – would come to control almost half of the company's stakes. In this way, the Catalanist branch of the shareholding, formed, among others, by founder Ernest Pérez-Mas and Ona Capital – the fund of the Font family, owner of the Bonpreu group – would have less power.

Changes in the council

Furthermore, during the shareholders' meeting, it is also planned to approve a capital increase worth 7.95 million euros. In this operation, the Malaga-based Domínguez family – owner of the children's fashion company Mayoral –, which currently holds approximately 20% of the company's shares, would play a relevant role so that their stakes remain at a similar level to the current one. Both in this capital increase and for the debt capitalization, Parlem's share will be valued at 80 cents per share.

The last point to be discussed at the extraordinary meeting will be to expand the board of directors of the Catalan company. It is worth remembering that, a few months ago, the directors of Inveready left their seats to avoid a conflict of interest due to the possible integration of Parlem with Avatel. The investment fund controls almost half of the Madrid-based company. Now, Inveready has requested to gain four shareholder directors on the board, as well as to incorporate two independent directors. This move, which has Mayoral's approval, would also give them a majority on the board.