Spain's debt-laden FCC group board okays EUR 710m capital increase

(MADRID) - Spain's debt-laden construction group FCC announced Thursday its board had approved a capital increase of 709.5 million euros ($768 million) to shore up the company's finances.

The group -- whose key shareholders are Spanish businesswoman Esther Koplowitz and Mexican billionaire Carlos Slim -- said more than 118 million new shares would be issued for six euros each.

It added that one of the main objectives of the capital increase was "the reduction of the group's debt level."

A property boom lasting a decade had driven FCC to invest heavily, but the market collapsed in 2008, leaving it with staggering debt.

The company has sought to diversify its business into sectors other than construction and now gets part of its earnings from environmental services such as waste management.

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FCC - FOMENTO DE CONSTRUCCIONES Y CONTRATAS SA