August 12, 2015 / 10:04 AM / 2 years ago

Spain's Sacyr to finalise Testa stake sale on Wednesday -source

MADRID, Aug 12 (Reuters) - Spanish builder Sacyr will finalise the sale of a 26.9 percent stake in property management company Testa to Merlin Properties on Wednesday, about seven months ahead of schedule, a source close to the deal said.

Sacyr will sell the stake for 375 million euros ($417 million), the source said, confirming a report in newspaper Cinco Dias. The deal had been expected to be finalised in March 2016.

Following the stake sale, Merlin, which agreed in June to buy Testa in phases for 1.793 billion euros, will control 77 percent of the company.

The sale is part of a strategy at Sacyr to restructure and reduce debt after a real estate bubble burst in 2008, followed by a deep economic crisis.

Sacyr had been considering the sale of shares in Testa, in which it held 99.2 percent, for more than a year in order to increase its free float of readily tradable shares and raise cash.

"We believe it could be positive news for Sacyr ... If confirmed this enables the company to start revamping the roll out of its core business in order to offset the lost cash flow generation from Testa earlier," BESI said in an investor note. ($1 = 0.8985 euros) (Reporting by Carlos Ruano; Writing by Paul Day; editing by Carlos Ruano and Susan Thomas)

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