Carlos Slim to Invest Up To $875.4 Million in Spain’s FCC
FCC Will Sell Shares at More Than 50% Discount to Market
MADRID—Two companies owned by Mexican billionaire Carlos Slim will invest up to 700 million euros ($875.4 million) in Fomento de Construcciones y Contratas SA in exchange for 25.6% of the debt-laden Spanish builder.
The deal follows months of discussions with several potential investors, including with George Soros , who had been in exclusive talks with Ms. Koplowitz as late as last week. Ms. Koplowitz will see her ownership in FCC drop to 22.4% from just over 50%.
Mr. Slim’s investment adds to the all-star cast of FCC. Late last year, Microsoft Corp. Chairman Bill Gates paid €108.5 million for a nearly 6% stake the company.
FCC, which employs 80,000 people in 56 countries, was hard hit by a six-year property slump in Spain, and has struggled to pay its debts while it strove to diversify its business into sectors other than construction.
FCC said it would sell shares in the planned capital increase at €7.50 apiece. That implies a discount of more than 50% compared with its current market price of €15.3 a share.
Over the past year, Mr. Slim, hedge fund tycoons such as Mr. Soros and John Paulson , and investor Warren Buffett , have snapped up Spanish assets at deep discounts, betting that the country is on its way to a sustained recovery after two recessions over five years. The European Commission has said it expects Spain’s economy to expand 1.2% this year and 1.7% next year.
Under the terms of the deal, Mr. Slim and Ms. Koplowitz will each name four board members. Mr. Slim has also agreed to remain as an anchor investor for at least four years.
Shares in FCC were halted earlier on Thursday pending the announcement, and will resume trade later on Thursday.
FCC plans to use proceeds from the share sale to lower its debt as part of a refinancing agreement with its creditors.