Italian group Sansedoni has unveiled plans to separate its business into two real estate units to resolve a dispute among its shareholders. The company said last week that its key shareholders have signed an agreement in principle which envisages the split-up of Sansedoni's activities by the end of June 2010.
Italian group Sansedoni has unveiled plans to separate its business into two real estate units to resolve a dispute among its shareholders. The company said last week that its key shareholders have signed an agreement in principle which envisages the split-up of Sansedoni's activities by the end of June 2010.
On completion of the operation, Silvano Toti, who currently has a 28% stake in Sansedoni, will have full control of the Sviluppo e Interventi Edili portfolio, owner of Rome's Bufalotta development site. The other shareholders of the Sansedoni Group will take control of 72% of the company's assets, which will be transferred to a new company. As part of the accord, Silvano Toti's new firm will continue to focus on real estate development, while the other company will seek to grow in the asset management sector.
'The decision was taken in harmony and in agreement among all parties to allow the strengthening of the respective business areas,' the company said in a statement.
Sansedoni's decision is a result of a year-long dispute among its shareholders on the development of the company's business. While major shareholder Silvano Toti wanted the company to continue focusing on real estate development, the other shareholders were more inclined to concentrate on the asset management activities.
Fondazione MPS, which last year was mandated to outline a new business strategy for the group, 'identified in asset management a way to lessen risks and boost the company's capital flexibility', Sansedoni said. 'On the contrary, it is clear that Gruppo Toti's intention is to continue focusing on business models favouring real estate development,' it added.