DIA secures 771 million euros and opts for an additional 100 million euros, obtaining long-term financial stability | Progresiv

DIA Group (DIA) announced that it has reached a long-term agreement with its lenders and shareholders which guarantees access to 771 million euros, this liquidity will be deployed over the next 4 years to ensure the business is right-sized and repositioned to be competitive over the long-term. The principal shareholder, LetterOne has provided for the business immediate access to 500 million euros and DIA confirms that it also has agreed with its lenders an additional 271 million euros which will be made available as needed by the business, in addition to increasing the amount of the capital increase by 100 million euros.

DIA hereby obtains the financial muscle and stability of a shareholder structure fully aligned to building the business over time and generating financial results through revenue growth. The Company is now on a strong footing to commence its repositioning. The management team lead by Chief Executive Officer, Karl-Heinz Holland, will work through the key elements of the business model to ensure it is competitive long-term.  

“Today’s announcement reflects the strength, understanding and commitment of our reference shareholder; I am grateful for the support, their belief in DIA, and in our potential to create value in the long run. We now have the ability to take on challenges and to develop a great retail brand. It is my objective to act effectively for the benefit of our customers, our employees, our franchisees and suppliers”. Stated Karl-Heinz Hollland, DIA Group CEO. (www.internationalsupermarketnews.com)