DIA CorporateIn the news

Madrid, September 20, 2019.

DIA Group calls an Extraordinary General Meeting for October 22 at 9:00 am to obtain the approval from shareholders and carry out the Capital Increase of 605 million euros.

The Capital Increase will be carried out by issuing 6,055.5 million new common shares at a price of 0.10 euros per share (of which 0.01 euros correspond to the face value and 0.09 euros at issuance premium), providing a total amount of 605 million euros. The issuance will be made in two separate tranches 1) credit compensation and 2) cash contributions with preferential subscription rights and with the possibility of an incomplete subscription. The Capital Increase will have the commitment of assurance of up to 500 million euros of the majority shareholder. The issue price of the new shares is in line with the commitment acquired by the majority shareholder to the company's other shareholders.

At the General Meeting and prior to the Increase the Company proposes to reduce the share capital to compensate losses by€56,021,086, by reducing the nominal value of the Company's shares by €0.09, to leave it set at €0.01 per share. This reduction in the face value of the shares will allow to register 90% of the capital increase amount as a reserve of free disposal, giving the company significant flexibility in its capital structure.