If shareholders of San Paolo-IMI and its 99.99%-controlled property subsidiary Beni Stabili approve a proposed property spin-off, the Turin banking group will retain a 16.1% stake.
This is based on a share swap ratio of one San Paolo-IMI share per new Beni Stabili share. The core San Paolo-IMI shareholders will have 32.5% of the Rome-based company. The companies’ shareholders will meet in July 28 and 29.
According to the prospectus for the operation, assets to be transferred from San Paolo-IMI to Beni Stabili are worth €672m (L1,301bn). This will cut the bank’s fixed assets to €6bn (L969bn) from €6.8bn (L13,271bn).
Australian Financial Review,21 July 1999, page 26
