Prelios creditors take up shares left from capital increase
MILAN Aug 20 (Reuters) - Italian real estate management company Prelios said that creditors including tyremaker Pirelli and banks Intesa Sanpaolo and UniCredit would take up all 69.6 million euros worth of shares left unsubscribed in a capital increase.
Loss-making Prelios said on Tuesday that 45.4 million euros had been subscribed out of its 115 million euro ($154 million) capital increase - or 39.5 percent of the shares on offer.
Pirelli and banks including Intesa and UniCredit will take up the remaining shares by converting the debt owed to them by Prelios into equity, the company said.
In May Prelios, hit by writedowns in a home market suffering from recession, approved a turnaround plan that included the 115 million euro share offer and a 70 million euro capital increase reserved for new shareholder group Fenice Srl.
The plan calls for it to sell its real estate assets over the next two years and focus on boosting revenue from property under management worth 9.7 billion euros as of end-2012. It manages properties in Germany as well as Italy.
At the end of last year Prelios had minority stakes valued at 2.1 billion euros in the real estate portfolios.
Chief Executive Sergio Iasi said in May the company would not be a forced seller of real estate because the 561-million-euro debt restructuring provided two to three years to carry out the sales.
In June the company's board also approved the terms of an issue of a mandatory convertible bond with a nominal value of up to 269 million euros as part of its overall recapitalisation efforts. ($1 = 0.7448 euros) (Reporting by Valentina Za; Editing by Anthony Barker)
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