Kepler Weber scraps with BNDES over warrants

Brazilian agribusiness firm Kepler Weber is tussling with development bank BNDES over the value of equity warrants, and the extent to which existing shareholders are set to be diluted when they are exercised. Kepler, which manufactures grain production equipment, sold 113,321 debentures and warrants to BNDESPar in 2007. The firm says warrant each should be worth 25.4 Kepler shares on conversion, which would dilute shareholders by 9.9%. BNDESPar calculates it should get 41 shares, which would result in a 15.1% dilution. BNDESPar owns more than 99% of the firm’s debentures, which in turn account for around half of Kepler’s outstanding debt, says Felipe Fontes, investor relations official at the firm. Kepler reported net revenues of BRL19.8m in the third quarter. Pension fund Previ and Banco do Brasil Investimentos are the largest shareholders in the firm, with 17.6% and 17.5%, respectively. The firm’s shares were trading at BRL37.17 apiece on Monday, down from BRL41.09 on January 2.