Real estate group of Spain's Sacyr eyes capital hike

MADRID Wed May 28, 2014 5:41am EDT

MADRID May 28 (Reuters) - Testa, the real estate holding company of Spanish builder Sacyr, said on Wednesday that it was looking to increase its free-float and would seek shareholder approval at a meeting in June to raise capital.

The company, which is currently 99.5 percent owned by Sacyr, said it had hired JPMorgan and Morgan Stanley to advise it on a potential capital raising.

Testa had previously disclosed it was studying a capital hike of up to 800 million euros ($1.1 billion) to bring in new investors, in an operation that would also involve a special dividend, the bulk of which would go to its main investor.

The full structure or size of the capital issue had not been agreed on yet, Testa said. ($1 = 0.7345 euros) (Reporting by Carlos Ruano, Writing by Sarah White; Editing by Susan Fenton)

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