SIIC de Paris has unveiled plans for a EUR 143 mln rights issue with preferential subscription rights for existing shareholders, with new shares issued for cash or debt reduction.

SIIC de Paris has unveiled plans for a EUR 143 mln rights issue with preferential subscription rights for existing shareholders, with new shares issued for cash or debt reduction.

The capital increase is aimed at strengthening shareholders' equity, improving the company's loan-to-value ratio, as well as reducing the company's debt through the repayment of the existing EUR 118 mln loan from its majority shareholder, Spain's Realia Patrimonio.

The subscription price for the new shares will be EUR 171.24 per share and the subscription period will run to 18 June 2009. The new shares will carry dividend rights as of 1 January 2009. The transaction is being led by Société Générale Corporate & Investment Banking, acting as joint lead manager and sole bookrunner.