Davidson Kempner Capital Management LP's Burlington Loan Management DAC has completed its €71 million purchase of 611,910,548 Prelios SpA shares.
The shares were sold by Pirelli & C. SpA, Intesa Sanpaolo SpA, UniCredit SpA and Fenice Srl at 11.6 cents apiece.
Following the purchase, Burlington is obligated to launch a bid for the remainder of the company's ordinary shares, which Prelios has prepared for by recently appointing a financial adviser and independent expert to advise on the takeover offer.
According to the agreement, Prelios converted 210,988,201 unlisted class B shares, without voting rights, into listed ordinary shares, at a conversion rate of one ordinary share for one class B share. The company's fully subscribed and paid up share capital amounts to roughly €55.7 million, or 1,364,087,011 ordinary shares with no par value and regular dividend rights.
In a separate release, Prelios' board said it appointed Fabrizio Palenzona as a nonexecutive director to replace Giovanni Gilli, who announced his resignation June 13.