12/05/2014 – Expansion
The real estate firm controlled by Santander, Bankia, BBVA, Popular and Sabadell (Spain´s top banks) has approved a capital reduction of exact €1.077 million “to create a balance between the stake and the company´s net worth”.
Together with the cut, Metrovacesa´s share capital diminished from €1.482 million to only €405 million, arming itself against the possibility that the Royal Decree 10/2008 would not be renewed (the Decree allows small and medium-size firms to preserve liquidity through financial means – translator´s note).
The operation will be carried out by reducing the company´s shares´ value from current €1.50 to €0.41 a share.
Metrovacesa has already intended €52 million on patching its accumulated losses. Last year, the real estate firm was excluded from the stock exchange. In total, it lost €269.3 million in 2012, that shall be added to €145 million of loss in 2010 and another €900 million of 2009.
After leaving the stock market, the real estate company´s owners struggled to reduce the debt (showing €5 billion at the beginning of April 2013) via sales of its residential and land property.
Original article: Expansión (by Rocío Ruiz)
Translation: AURA REE