Metrovacesa's indebted majority shareholder, the Sanahuja family, said on Thursday it has reached a debt-for-equity agreement with creditor banks who will take a 65% stake in the company.
Metrovacesa's indebted majority shareholder, the Sanahuja family, said on Thursday it has reached a debt-for-equity agreement with creditor banks who will take a 65% stake in the company.
The Sanahujas will exchange debt of EUR 2.09 bn for a 54.75% stake in the troubled Spanish property company, in a deal valuing Metrovacesa shares at a premium of EUR 6 per share to current stock market prices. The bank syndicate consists of BBVA, Banco Español de Crédito, Banco Popular Español, Banco de Sabadell, and Banco Santander.
In a statement to the stock market authorities on Thursday, Metrovacesa said the banks will also each buy a further 1.78% of the company at a price of EUR 57 per share. The family will have a four-year option to repurchase all or part of the 1.78% interest.
The Sanahujas had fuelled their acquisition of an 80% stake in Metrovacesa with debt of over EUR 5 bn, using the shares as guarantee for the loans. The family said it will also transfer assets owned by its investment holding Cresa-Sacresa to the same banks as repayment for additional loans. It added that it will hand over real estate assets worth some EUR 125 mln to Metrovacesa.
Metrovacesa's shares were up by 2% at EUR 51 in late trading on Thursday.
Metrovacesa is the second Spanish property group this year to fall into the hands of its creditors, following Colonial in April. On Thursday a bank syndicate took control of a 75% stake in New Star Asset Management, the UK fund manager, which failed to meet debt repayments.
