By Andrea Figueras

Shares in Davide Campari-Milano dropped after the company said it raised 1.2 billion euros ($1.31 billion) through a discounted share offering and an issue of convertible bonds.

At 0945 GMT shares were down 5.3% at EUR9.40.

The Italian distiller said new shares, which represent 5.6% of its issued and outstanding ordinary share capital, were placed at EUR9.33 each, down from the closing share price on Tuesday of EUR9.93.

The company aims to use proceeds to fund its planned acquisition of Beam Holding France, which owns Courvoisier cognac, for up to $1.32 billion, it said.

"According to our calculations, the acquisition in the short term would have brought leverage close to the levels that management considers as a ceiling," Equita analyst Paola Carboni said in a research note.

With the measure, Campari could gain financial flexibility and pave the way for any possible new acquisition, the analyst said.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

January 10, 2024 05:10 ET (10:10 GMT)

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