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Villar Mir takes over Colonial

22/01/2014 – El Mundo

Yesterday, the shareholders of Colonial approved in an extraordinary meeting to increase the capital up to 1.000 million Euros. With this transaction the group Villar Mir will take over the real estate, reinforced as first partner with the 29,9% of the shares.

Colonial’s Executive Director, Pere Viñolas, specified that 79,2% of the shareholders voted in favor. He considers that the first step has been taken to refinance depts. Although the fund of the Canadian investment Brookfield has bought the 46% of the syndicated loan and therefore is its first creditor, Viñolas yesterday supported that “there is no risk” of “blocking” the debt restructuring and that Colonial works in order to achieve “a new debt structure that will pay the former”.

However, it is unknown how Brookfield will react. Yesterday, not even one fund representative took the floor to defend its own alternative. But, in spite of Brookfield’ s silence, the board presented the offer made by the Canadian fund and Viñolas, in a press conference, urged to increase the capital, according to Efe’s information.

A plan for increase

The plan contemplates a monetary increase up to 1.000 million, the sale of maximum 20% of SFL’s shares, in which Colonial is the majority shareholder of 53% and the acquisition of a new syndicated loan that will contribute to pay off the current one, which expires at the end of the year.

From these 1.000 million Euros, 500 are already guaranteed, since Villar Mir will deposit maximum 300 and other two investors- the Latin American investment firm Santo Domingo and the Andorran sicav Amura Capital- have promised to deposit 100 each. Regarding the remaining 500, Viñola strongly believes in the interest of the investors in participating in this increase, but just in case, the Board authorized the possibility of converting the debts into capital.

Villar Mir in 14th of January became the reference shareholder of Colonial, after buying from Royal Bank of Scotland (RBS) 19,33% of the real estate for 43,6 million. After the capital’s increase, the group aspires to control a maximum of 29,9% in order to avoid launching a takeover bid.

Source: El Mundo