The name Nyrstar has lost almost 17% this Monday after announcing changes on Friday night at group level.
Although small shareholders Nyrstar
looks forward to the results of the in-depth review of the Group's balance sheet structure, the zinc specialist has cleared his management level. The announcement, which has not convinced the market, shifts from 18% to start at 16.67%.
Trafigura strengthens adhesion
If the current CEO remains in force, he will be accompanied by his mother. Martyn Konig, since 2016, the chairman of the board actually becomes an executive director. "This is the first time Trafigura's representative (major shareholder of the group with 24.6% stake, Ed) are executive responsibilities within Nyrstar ”, highlights Stijn Demeester noING. "Konig will closely monitor the restructuring process (debt, Ed) while executive director Hilmar Rode will focus on business. This reinforces Trafigura's position in the Nyrstar corner, " Judge Analyst.
After just six months, the CFO Michel Abaza In turn, thank you immediately. He is replaced by a temporary control by a group controller Roman Matej who have eight years of service. The latter will continue to work closely with the Alvarez & Marsal team, which helps Nyrstar review its capital structure, said zinc specialist on Friday night.
Nyrstar does not say when this report will be completed. Maybe we'll find out more February 21 publishing the annual results. Unless the veil is raised before.
about Wim Hoste no Securities of KBC, debt restructuring seems absolutely necessary for Nyrstar to survive. Not only is its debt very heavy – the net debt ratio is adjusted to EBITDA expected after the end of 2018 – but due to excessive rates, it is also impossible to require the market to refinance the bond. EUR 340 million, which expires in September this year.
"At this point, it is not clear what kind of debt restructuring (debt) will be – and what will be the value to the shareholders" emphasizes analysts. While waiting to learn more, you should continue to 'cut' your target price by $ 0.50.
His colleague from ING keeps his recommendation to "sell" with a target of EUR 0.40. "This decision is based on the idea that capital structure research will create a highly dilutive debt / equity swap with the possibility of eliminating minority shareholders and influencing the latest bondholders."