JP Morgan Declares That It Holds A 3% Stake In Realia

2 December 2015 – El Economista

JP Morgan has declared that it holds a 3.1% stake in the share capital of Realia, a percentage valued at €7 million on the basis of the current market price of the real estate company controlled by Carlos Slim.

In this way, the entity has become a shareholder of the company in which Slim holds a 25.10% stake and FCC, the construction group in which the Mexican businessman also holds a stake, holds another 36.8%.

JP Morgan holds a package of 9.55 million shares in Realia, and therefore on 25 November, it exceeded the 3% capital threshold in the firm that requires it to declare its stake, according to the registers of Spain’s National Securities Market Commission (CNMV).

The entity has taken this position in the real estate company after Carlos Slim took control of the firm through a public share acquisition (takeover) and the real estate company announced a capital increase with a view to strengthening its financial structure.

The capital increase will amount to €87 million, and Slim has already expressed his commitment to participate in the operation, whereby he will inject around €21 million.

With this operation, Realia seeks to strengthen its financial structure, as a preliminary step prior to the launch of the restructuring of the company’s debt, which amounts to €1,067 million, half of which matures next year, in June 2016.

The clean up of the real estate company constitutes one of the main objectives of the new majority shareholder, as stated in the prospectus for the takeover that he launched for the company.

Original story: El Economista

Translation: Carmel Drake