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Mobly’S Tok&Stok Deal: Capital Boost And First-Ever Debenture Offering
(MENAFN- The Rio Times) Mobly (MBLY3) has taken a significant step in its acquisition of Tok&Stok. The company's board of directors approved a capital increase of up to R$ 230.6 million ($41.2 million) on Thursday.
The furniture retailer plans to issue between 13.6 million and 56.2 million new shares. Each share will be priced at R$ 4.08, which is 91.5% higher than the closing price on Thursday.
In addition to the capital increas , Mobly will make its first debenture issuance. The company will offer a single series of debt securities for private placement. The minimum subscription is R$ 100 million ($17.9 million) and the maximum is R$ 500 million ($89.3 million).
These financial moves are part of Mobly's agreement to acquire control of Tok&Stok, which was announced in August. The deal has been in negotiation for several years.
Mobly previously stated it would increase capital to incorporate 60.1% of Tok&Stok's capital held by SPX Capital-managed funds. The company also planned to issue debentures to its shareholders and Tok&Stok's controlling affiliates.
The debentures are convertible, giving holders the right to subscribe to additional Mobly common shares. However, there is a 24-month lock-up period. During this time, Mobly's current controlling shareholders, founders, and SPX-managed funds commit to holding their shares.
Mobly's Tok&Stok Deal: Capital Boost and First-Ever Debenture Offering
With control of Tok&Stok, Mobly will now have 70 stores and an annual revenue of R$ 1.6 billion ($285.7 million). This makes it one of the largest specialized furniture retail chains in Brazil.
The current management expects to gradually increase cash generation. They anticipate an additional annual increase of R$ 80 million to R$ 135 million ($14.3 million to $24.1 million) over five years.
This acquisition marks a significant expansion for Mobly in the Brazilian furniture market. It demonstrates the company's commitment to growth and its confidence in the sector's potential.
The furniture retailer plans to issue between 13.6 million and 56.2 million new shares. Each share will be priced at R$ 4.08, which is 91.5% higher than the closing price on Thursday.
In addition to the capital increas , Mobly will make its first debenture issuance. The company will offer a single series of debt securities for private placement. The minimum subscription is R$ 100 million ($17.9 million) and the maximum is R$ 500 million ($89.3 million).
These financial moves are part of Mobly's agreement to acquire control of Tok&Stok, which was announced in August. The deal has been in negotiation for several years.
Mobly previously stated it would increase capital to incorporate 60.1% of Tok&Stok's capital held by SPX Capital-managed funds. The company also planned to issue debentures to its shareholders and Tok&Stok's controlling affiliates.
The debentures are convertible, giving holders the right to subscribe to additional Mobly common shares. However, there is a 24-month lock-up period. During this time, Mobly's current controlling shareholders, founders, and SPX-managed funds commit to holding their shares.
Mobly's Tok&Stok Deal: Capital Boost and First-Ever Debenture Offering
With control of Tok&Stok, Mobly will now have 70 stores and an annual revenue of R$ 1.6 billion ($285.7 million). This makes it one of the largest specialized furniture retail chains in Brazil.
The current management expects to gradually increase cash generation. They anticipate an additional annual increase of R$ 80 million to R$ 135 million ($14.3 million to $24.1 million) over five years.
This acquisition marks a significant expansion for Mobly in the Brazilian furniture market. It demonstrates the company's commitment to growth and its confidence in the sector's potential.
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