The share capital increase in cash with preferential subscription rights launched by Nexans on 15 October 2013 has been a great success. The final gross proceeds of the transaction amount to 283,791,195 euros, corresponding to the issue of 12,612,942 new shares.

Total demand for this capital increase amounted to approximately 582 millions euros, corresponding to a subscription rate of approximately 205%. 12,260,265 new shares were subscribed on a pro rata basis (à titre irréductible), representing approximately 97.2% of the total number of new shares, while 13,618,412 new shares were subscribed on a basis subject to reduction (à titre réductible), and will, as a result, only be satisfied in part, in the amount of 352,677 new shares.

The capital increase will allow Nexans to:

  • Strengthen its financial structure by:
    • Improving the capital structure which has been impacted by various non-recurring items (adoption of IAS 19R, impact of the evolution in currencies and metals on the fair value of derivatives, conversion reserves);
    • Reducing net debt/EBITDA and net debt/shareholders' equity ratios to lower levels;
  • Sustain credit profile by:
    • Supporting credit ratings and optimizing financing costs, in particular through, subject to market conditions, repurchase or repayment of local debts (which may amount to approximately 100 million euros) or financial instruments of the Group;
    • Increasing financial flexibility through long-term access to diversified sources of financing; and
  • Give flexibility in the execution of the Group's strategic initiatives.

Upon completion of the capital increase, Group Quiñenco, following its subscription by irrevocable entitlement and by entitlement subject to reduction, and direct purchase of shares in the market, will hold approximately 25.3% of Nexans' share capital.
In addition, Bpifrance Participations will hold, upon completion of the capital increase, approximately 8% of Nexans' share capital.
Settlement and delivery and the listing of the new shares on the regulated market of NYSE Euronext in Paris (compartment A) are expected to take place on 8 November 2013. The new shares will be immediately fully fungible with Nexans' existing shares and will be traded on the same quotation line as the existing shares under the same ISIN code FR0000044448. As from this date, the share capital of Nexans will be composed of 42,043,145 shares with a nominal value of 1 euro each, for a total share capital of 42,043,145 euros.

With the exception of the shares covered by Group Quiñenco's commitment to subscribe, the transaction was fully underwritten by a syndicate of banks composed of BNP PARIBAS, acting as Global Coordinator and Joint Bookrunner, Crédit Agricole Corporate and Investment Bank, acting as Joint Bookrunner, and HBSC Bank plc acting as Co-Lead Manager.

Information of the public
A French language prospectus including (i) the registration document of Nexans filed with the Autorité des marchés financiers (the "AMF") on 3 April 2013 under no. D.13-0273 (the "2012 Registration Document"), (ii) the update to the registration document filed with the AMF on 14 October 2013 under no. D.13-0273-A01 (the "Update to the Registration Document") and (iii) a securities note (which includes the summary of the prospectus) filed with the AMF on 14 October 2013 under n°13-541 (the "Securities Note") is available free of charge from Nexans (8, rue du général Foy - 75008 Paris) and from the financial intermediaries mentioned above as well as on the websites of the AMF ( www.amf-france.org) and the company (www.nexans.com).

Nexans draws attention to the risk factors included in pages 34 to 42 and 185 to 197 of the 2012 Registration Document, in chapters 3 and 4 of the Update to the Registration Document and in chapter 2 of the Securities Note and especially the risks linked to the antirust authorities' investigations in Europe, the United States, Canada, Brazil, Australia and South Korea (in addition to the on-going procedures regarding local business) for anticompetitive behavior in the submarine and underground power cable sectors. An unfavorable outcome of these investigations and follow-on consequences could have a significant material adverse effect on the results and the Group's financial situation, even above the potential fine that may be imposed by the European Commission. Following the Statement of Objections received from the European Commission's Directorate General for Competition on July 5, 2011, Nexans France SAS recorded a 200 million euro provision in its individual financial statements for a potential fine that could be imposed on it, which provision was included in the Group's consolidated financial statements since June 30, 2011. As the outcome of the proceedings will likely be known within 12 months, the 200 million euro provision has been reclassified within current items in the 2013 interim [consolidated] financial statements.

Beside risk factors, main uncertainties for the fourth quarter 2013 are included in the Update to the Registration Document filed with the AMF on 14 October 2013.

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