IRSA announces a change in the total amount of shares and its nominal value, with no economic impact
BUENOS AIRES, Argentina, Sept. 18, 2023 /PRNewswire/ -- IRSA Inversiones y Representaciones S.A. (NYSE:IRS, ByMA:IRSA), Argentina's leading Real Estate company, informs that CNV and BYMA approved what has been decided in the Company's Shareholders meeting held on April 27, 2023:
An increase in the capital stock in the amount of ARS 6,552,405,000, through the partial capitalization of the Issue Premium account, resulting in the issuance of 6,552,405,000 common shares, with a par value of ARS 1 and with the right to one vote per share.
Changing the nominal value of the ordinary shares from ARS 1 to ARS 10 each and entitled to one (1) vote per share.
It should be mentioned that this capitalization and change in the nominal value of the shares do not modify the economic values of the holdings or the percentage of participation in the share capital.
The Company informs all shareholders who have such quality as of September 19, 2023, according to the registry maintained by Caja de Valores S.A., that from September 20, 2023, the shares distribution and the change in nominal value will be made simultaneously and the entry of the change of 811,137,457 book-entry common shares, with a nominal value of ARS 1 each and one vote per share, for the amount of 736,354,245 book-entry common shares with a nominal value of ARS 10 each and one vote per share, consequently, a reverse split of the Company's shares shall be carried out, where every 1 (one) old share with nominal value of ARS 1 shall be exchanged for 0.907804514 new shares with nominal value ARS 10. The new shares to be distributed due to the described capitalization will have economic rights under equal conditions with those that are currently in circulation.
Also, regarding the GDS holders, we instruct BNYM to process the reverse split, at the same rate as mentioned above for the ADR program, effective October 3, 2023.
Regarding the shareholders who, because of the entry in the Scriptural Registry, have fractions of common shares with a nominal value of ARS 10 and one vote per share, they will be settled in cash in accordance with the listing regulations of Bolsas y Mercados Argentinos. Regarding the shareholders who, due to the exchange of shares did not reach at least one share with a nominal value of ARS 10, the necessary amount will be assigned to them until the nominal value of ARS 10 is completed.
It is reported that the Company share capital after the indicated operations will amount to ARS 7,363,542,450 represented by 736,354,245 book-entry common shares with a nominal value of ARS 10 each and one vote per share.
Likewise, and for the purpose of clarification, some examples are detailed below, where the effects of capitalization and change in nominal value are assumed, and effects on the price are not considered for market reasons:
COMMON SHARES | IRSA MARKET VALUE | EXAMPLE FOR AN INVESTOR HOLDING 100 COMMON SHARES | ||||
CURRENT | AFTER CAPITALIZATION | CURRENT HOLDING | HOLDING AFTER CAPITALIZATION | |||
Number of Shares | 811,137,457 | 736,354,245 | 100 | 90 | ||
Price (9/12/2023) | ARS 505.20 | — | ARS 505.20 | — | ||
Price (estimated) | — | ARS 556.51 | — | ARS 556.51 | ||
+Payment of fraction in cash | — | ARS 434.10 | ||||
Market Value | ARS 409,787 million | ARS 50,520.00 | ||||
GDSs | IRSA MARKET VALUE | EXAMPLE FOR AN INVESTOR HOLDING 100 GDSs | ||||
CURRENT | AFTER CAPITALIZATION | CURRENT HOLDING | HOLDING AFTER CAPITALIZATION | |||
Number of GDSs | 81.1 million | 73.6 million | 100 | 90* | ||
Price (9/12/2023) | USD 6.77 | — | USD 6.77 | — | ||
Price (estimated) | — | USD 7.46 | — | USD 7.46 | ||
Market Value | USD 549.1 million | USD 677 | ||||
* Fractions will be settled in accordance with Deposit Agreement provisions. | ||||||
Investor Relations Department.
+ 5411 4323-7449
ir@irsa.com.ar
https://www.irsa.com.ar/home-inversores.php?lng=en
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SOURCE IRSA Inversiones y Representaciones S.A.
