Pirelli will rise from 13 to 29% in the capital of Prelios after the exercise of the convertible loan that the real estate company will recall following the loss of 333 million in 2013. The Bicocca group communicates this in a note, explaining that "In line with the regulation of the bond loan following the aforementioned conversion, Pirelli , as known to the market, will receive Prelios shares in exchange for the Prelios bonds it holds (Tranche A and B) with a total nominal value of 148,4 million (plus accrued interest)”
Approximately 29% held by Pirelli in Prelios will be approximately 7% freely transferable and approximately 22% subject to lock-up obligations until July 2016 (with automatic renewal for a further three years unless cancelled), as set out in the agreements among the shareholders of Fenice (Pirelli, Intesa Sanpaolo, Unicredit and Feidos 11).
“Any effects deriving from the conversion will be accounted for in the 2014 half-yearly report – continues the note from Pirelli – without any impact on the net financial position. Pirelli reaffirms its strategy of focusing on the core business of tires and, as already announced to the market on other occasions, therefore not being a long-term investor in the real estate sector: as such, it will be able to seize the opportunities that arise on the market to enhance its shareholding, taking into account the existing agreements between Fenice's shareholders".
In addition to Pirelli, the convertible loan was underwritten by a pool of banks which, once the transaction is completed, will hold a substantial share of the capital: according to some estimates around 35%.
Opening today in Piazza Affari, Pirelli's share gains 0,86%, to 11,78 euros, while that of Prelios drops one percentage point, to 0,6675 euro.
