Testa Preps For a €300 Mn Capital Increase

23/09/2014 – Expansion

The real estate arm of Sacyr, Testa, prepares a capital increase through a public offer of subscription (POS) without pre-emptive right that, according to estimations of the market, would allow it to capture €300 million minimum. Sacyr controls 99% of the leading branch in the sector and disposing of a highly attractive portfolio. The increase will be equal to 30% of the capital.

Prior to the new share issue, Sacyr is going to finish the internal restructuring of the company which assumes paying extraordinary dividends and carrying out a capital reduction of €623.56 million (5.4 euros a share) in order to cancel intra-group loans. In parallel, Testa will pay €518 million in extraordinary dividends from its reserves.

Finally, Sacyr will inject around €1.1 billion to redeem a €900 million loan, while the remaining amount will be intended for paying-off the firms corporate debt.


Original article: Expansión (by C. M. & D. B.)

Translation: AURA REE