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Solocal Capital Increase Big Positive, Raised to CL Buy: Goldman 2014-03-07 07:31:49.921 GMT
By Blanche Gatt March 7 (Bloomberg) -- Solocal’s announced EU440m capital increase is “significant positive,” Goldman says in note dated yday; adds to Conviction Buy list from sell. * Goldman says capital increase will erase debt overhang, allow co. to focus on expanding its digital business * Main online business is resilient, diversification strategy creating new rev. streams, while print only 35% of rev. * New investment to increase growth 1%-2% a year; may affect S/T margin * Sees approval of debt extension, prepayment by lenders at end-March * Sees AGM approving final terms of capital increase at end-April * Shares rose 25% yday after Goldman’s rating change was announced * Up 75% YTD, after falling 41% in 2013 * NOTE March 3: Solocal Lenders Given Extra Time to Agree to Extension Request
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To contact the reporter on this story: Blanche Gatt in London at +44-20-7392-0351 or bgatt@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net