CCC footwear agrees terms with Modivo's minority shareholders for their sale of shares

Listed footwear and fashion retail group CCC's management board has agreed with the minority shareholders of its subsidiary Modivo the terms and conditions of the sale of Modivo's shareholdings to CCC using the proceeds from a new issue of CCC shares, the group said in a market filing.


The minority shareholders of Modivo will sell a total of 2,290,505 Modivo shares representing 22.81 percent of the capital of this company to CCC.

Approimately PLN 1.36 billion (EUR 326.67 mln) will be paid by CCC to the minority shareholders with the cash that the company plans to raise from the issue of new shares, and approximately PLN 50 million (EUR 12 mln) will be settled by contractual set-off of the mutual receivables of the company and the sellers.

It is to come from the conditional commitment agreements and agreements to take up 2.5 million series D subscription warrants of the company, which the company plans to issue to AR and EMBUD 2, at an issue price of PLN 20 (EUR 4.80) per warrant, entitling to take up 2.5 million series O shares of the company.

The total valuation of the shares will be approximately PLN 1.41 billion (EUR 338.68 mln).

CCC's management board has received a declaration from the company's shareholder, Ultro, to provide the company with equity financing of approximately PLN 500 million (EUR 120.1 mln) through a share issue, i.e. at a level that will ensure that the shareholder's current capital commitment to the company is maintained or increased.

In addition, Ultro has informed CCC that it has entered into a conditional agreement with AR and EMBUD 2 for profit sharing and minimum return on warrants. On the basis of the agreement, Ultro will ensure that these entities receive an agreed rate of return, while Ultro has the right to require EMBUD and AR to sell all or part of the warrants they have subscribed for.

The issue of up to 2.5 million series D warrants and up to 2.5 million series O shares will be decided at CCC's general meeting convened on March 17.

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