Pirelli Real Estate has confirmed that it is to issue up to 798 million new shares in a capital increase to raise EUR 400 mln.
Pirelli Real Estate has confirmed that it is to issue up to 798 million new shares in a capital increase to raise EUR 400 mln.
The operation will take place by means of the issue of new shares, with dividends due from 1 January 2009 and a face value of 50 cents per share, which will be offered to existing Pirelli RE shareholders on a pro rata basis.
The Italian real estate company said the capital increase was part of its 2009-2011 business plan which is designed to steer the firm through the current financial markets crisis.
Parent company Pirelli & C. committed itself to exercising its rights on 56.45% of the company's capital prior to the capital increase in full. The tyre-maker also declared its willingness to underwrite any shares which, at the end of the offer process, are not taken up.
Deutsche Bank, Banca IMI, Morgan Stanley and Unicredit will act as placement agents. The firms Bonelli, Erede, Pappalardo and Shearman & Sterling LLP served as Pirelli RE’s legal advisor.
