With the aim of strengthening its financial stability and financing its investment plan
OR Hellenic Train announced its decision to raise funds through increase of its share capital by 50 million euros, with the aim of strengthening its financial stability and financing its investment plan.
The total equity of the company had become negative after the losses for the year 2023. Consequently, the management and the shareholder, realizing the need to strengthen the capital structure of Hellenic Train and following the adoption of the measures as defined by the conditions of article 119 N. 4548 made the present decision, it is pointed out in the relevant announcement.
The decision, approved by the sole shareholder of the company, Trenitalia SpA, on 27/11/2024, includes the issue of 3,096,000 new shares with a nominal value of €16.15 each. Along with the share capital increase, it was decided to reduce the nominal value of the company’s share, from €16.15 each, to €1.19 each, so that the amount of the reduction can be offset against accumulated losses. Given the netting, the company’s share capital now amounts to €6.2 million.
From the amount of the increase:
- €35 million will be offset against existing obligations to the shareholder, Trenitalia SpA and mainly concern the acquisition of the ETR – 470 high-speed trains,
- €15 million have already been paid and credited to the company’s bank account by the sole shareholder, Trenitalia SpA to support the company’s operational activities.
The capital increase is only part of a wider financing plan, which aims to:
In stimulating financial stability, providing flexibility for the implementation of strategic investments, which will contribute to the upgrading and modernization of the Greek railway.
Hellenic Train confirms its adherence to the regulatory requirements of the State, ensuring its financial viability and the effective management of its resources to support its future plans
The CEO of Hellenic Train, Mr. Roberto Rinaudo, said about it: “The share capital increase confirms Trenitalia’s commitment to the development of Hellenic Train. This important investment strengthens our financial capabilities and allows us to proceed dynamically in the implementation of our investment plan. Our vision is to create a modern and safe railway, worthy of the expectations of our passengers and shareholders”.
