Pirelli RE's board has approved the definitive terms of the agreement to sell 20% of Pirelli & C. Credit Servicing, the group's NPL management arm, to DGAD International, part of Calyon. The operation is part of the previously announced plans to reduce the financial commitment to the business of non-performing loans, the company said. The closing of the transaction is expected by 30 June 2009.
Pirelli RE's board has approved the definitive terms of the agreement to sell 20% of Pirelli & C. Credit Servicing, the group's NPL management arm, to DGAD International, part of Calyon. The operation is part of the previously announced plans to reduce the financial commitment to the business of non-performing loans, the company said. The closing of the transaction is expected by 30 June 2009.
As part of the deal, DGAD International will enter the corporate capital of the company through underwriting a reserved capital increase of EUR 6.6 mln. As a result, Pirelli Credit Servicing's enterprise value will be EUR 36 mln. This transaction will generate a gross capital gain of some EUR 3 mln for Pirelli RE.The agreement is also expected to have a positive impact of around EUR 89 mln on Pirelli RE's net financial position.
