By Kim Richters


Faurecia SE traded lower Friday after the automotive supplier said it is carrying out a capital increase of around 705 million euros ($757.6 million) to partially refinance its acquisition of Hella GmbH & Co. KGaA.

At 0747 GMT, shares in Faurecia traded 5.9% lower at EUR24.00.

Under the approved capital increase with shareholders' preferential subscription rights, Faurecia will issue a total of 45,482,154 new shares at a price of EUR15.50 apiece, the company said. The subscription period runs from June 9 to 17.

"The proceeds of the rights issue will be used by Faurecia to partially refinance the acquisition of Hella...by refinancing part of the initial bridge facilities," the company said.

Faurecia in January completed the acquisition of a controlling stake in Hella. Faurecia currently holds 81.59% of Hella's share capital and the total investment amount stands at EUR5.4 billion. The combined group uses the umbrella name Forvia.


Write to Kim Richters at kim.richters@wsj.com


(END) Dow Jones Newswires

06-03-22 0412ET