The largest exporter of wine in Chile, Viña Concha y Toro (NYSE: VCO), proposed Thursday a capital increase of approximately US$45 million, through the issue of new shares, and up to US$129 million through the issue of new bonds. The total increase of capital of up to US$174 million will be used to pay off old debt, and to finance new investments.
A shareholder meeting will be held on December 18, with a vote on the issue of 29 million new shares, in addition to the 719 million currently in circulation, representing a 4,03% increase.
Concha y Toro will issue two lines of credit, with a value of one million UF (Unidades de Fomento) (US$31.5 million) each, and a maturity of five years. In addition, an amount of two million UF (US$63 million) will be issued, with a maturity of 21 years.
The company's shares (STO: CONCHATORO) closed down Thursday by 3.5%, ending at Ch$1.000 per share. The share price reflects a P/E of 20.01, a YTD performance of (-3.0%), and a market cap of Ch$719 billion (US$1.07 billion).
Concha y Toro's latest interim statements can be found in our download section.