MADRID, July 30 (Reuters) - Spanish infrastructures and building group OHL said on Thursday it would raise 1 billion euros ($1.1 billion) in a share sale to cut debt and invest in new concessions outside Mexico.
The group, which has been struggling with high debts after a deep economic crisis at home, said it would use 650 million euros to reduce debt, while the remaining 350 million would be invested in concessions it was recently awarded outside Mexico.
OHL also said it was in talks to sell assets in its engineering and construction division, which would provide another 250 million euros in cash in the fourth quarter to further reduce debt.
While still struggling financially, OHL’s business gave some encouraging signs on Thursday, with a 7.8 percent rise in first-half core profit (EBITDA) to 450 million euros and a 30 percent jump in net profit to 52 million euros.
Net debt stood at 5.7 billion euros at end-June, up from 5.6 billion euros at the end of 2014 when its net debt to EBITDA (earnings before interest, tax, depreciation and amortisation) ratio, a measure of financial leverage, was 5.22.
Majority shareholder, Grupo Villar Mir, committed to subscribe to enough shares in the capital hike to maintain its stake above 50 percent.
All shareholders will vote on the plan at a meeting in early September.
$1 = 0.9174 euros Reporting by Julien Toyer; Editing by Sonya Dowsett and Mark Potter