Pirelli Re continues with its streamlining program : the Board of Directors approved the agreement to sell 20% of Pirelli Credit Servicing, the corporate entity focused on the management of «non-performing loans» to Dgag International (Calyon Sa). This was a decision in line with the 2009-2011 Industrial Plan guidelines setting forth a gradual reduction of Pirelli Re‘s financial committment in the «non-performing loans» business as well as its greater focus on services.
Based on the agreement reached, Dgag International will become part of Pirelli Re through a reserved capital increase worth 6.6 million Euros, with an enterprise value following the capital increase of approx. 36 million Euros and a 33 million Euros equity value. The deal generates for Pirelli Re a 3 million Euros gross capital gain, with a positive impact on its net financial position of approx. 89 million Euros, shareholders’ funding included. The closing is to take place at the end of June.
Categories: Pirelli RE