(Alliance News) - First Capital Spa announced on Monday that it has approved the group's reorganization project, "which will enable it to improve the operations and structure of its core business," a note said, through the transfer of holdings in listed companies to its subsidiary First SICAF Spa. The latter's shareholders' meeting also approved a EUR50 million capital increase.

Following the recent acquisition of Invest Italy SIM Spa, the company deemed it "appropriate" to functionally separate the investment and advisory divisions, transferring the PIPE investment business to the subsidiary SICAF, "with the ultimate goal of attracting new capital from professional and institutional investors under the group's reserved FIA."

The transfer of strategic stakes in listed companies, First Capital points out, is thus aimed at "enhancing their valuation from a long-term investment perspective, while also qualifying SICAF as an institutional and PIR alternative investor focused on investments in the real economy."

Specifically, the shareholdings in Orsero Spa, Cy4Gate Spa, B&C Speakers Spa, ALA Spa and Cellularline Spa are transferred from First Capital to SICAF, for a total countervalue, supported by a voluntary appraisal report, of approximately EUR37 million.

Taking into account the shareholdings already in the portfolio, SICAF starts as an Alternative PIR thus having assets under management for about EUR70 million, with the intention of becoming the main operator on the Italian market for pre-IPO and PIPE transactions on Italian SMEs listed or interested in a future listing, leaders in their market niches and with relevant growth prospects, for the creation of long-term value.

To this end, SICAF's shareholders' meeting held on January 19, which approved the transaction, simultaneously approved a capital increase of an additional EUR50 million to raise capital from professional and institutional investors within 24 months.

Investments in private companies in the form of club deals and special investment vehicles will continue to be made by First Capital, which, in addition to directly promoting this form of investment by maintaining its holdings in First4Progress Spa, First Gen Srl and Lab Investments Srl, will continue to operate as a group holding company.

First Capital's stock closed 0.6 percent in the red at EUR17.60 per share.

By Chiara Bruschi, Alliance News reporter

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