Colonial Issues the €1.266 Mn Capital Enlargement in New Shares

28/04/2014 – Expansion

Colonial has managed to place the entirety of €1.266 million capital enlargement during the pre-emptive subscription period expiring on April 25th.

The real estate firm held in majority by Grupo Villar Mir thus begins its threefold plan assuming balance reinforcement, debt reduction and entrance of new stakeholders.

The €1.266 million raised for the amplification will together with €1 billion syndicated loan be intended for paying-off Colonial´s total debt of €2.1 billion.

The company will be also able to run new strategy focused on office buildings in Madrid, Barcelona and, via its French branch SFL, in Paris.

In total, Colonial´s shareholders pledged €572 million capital enlargement, out of which €308 million was paid by Villar Mir. Right now, the group holds 24.4% of the stake, followed by Coral Partners with 9.9%, Qatar´s sovereign fund (8.7%), MoraBanc (7.5%), Credit Agricole (4.9%), Santo Domingo (3%) and Fidelity (3.3%).

All the new shares issued by the firm will appear on the stock market on May 8th.


Original article: Expansión

Translation: AURA REE