PDG Board Approves Vinci Entry

PDG Realty’s board has approved a plan from private equity firm Vinci partners to raise BRL800m ($390m), the homebuilder says. Under the proposal, unveiled last week and aimed at strengthening PDG’s finances, Vinci would raise BRL800m through the sale of warrants entitling each holder to one new share and one convertible debenture at BRL4.02 each. This represented an 11.4% premium to the previous closing share price and a 20.7% premium to Monday’s BRL3.33 close. The debentures acquired under the plan could be converted after 4 years into one additional new share at a minimum of BRL6.00 per share. Vinci would contribute between 54.8% and 81.4% of the fresh capital under the plan. In a change from the original Vinci proposal, PDG modified the lock up period to 4 years from 2. The plan is still subject to shareholder approval.