February 14, 2019 / 8:12 AM / 3 days ago

UPDATE 1-Italy's Salini offers Astaldi 225 mln euro rescue

(Adds detail, background)

MILAN, Feb 14 (Reuters) - Italy’s Salini Impregilo has offered to invest 225 million euros ($254 million) to rescue troubled rival construction group Astaldi, the company said on Thursday.

Subscribing to a reserved capital increase, the proceeds of which will help Astaldi repay debt, Salini will gain a 65 percent stake, it said in a statement.

Salini said the offer was conditional on Astaldi reaching an accord with its creditors as well as other long-term investors contributing to the cash call and banks agreeing to grant Astaldi credit to stabilise the group’s finances and operations.

Separately on Thursday, Astaldi said its board had approved a proposed accord with creditors and a plan consistent with Salini’s offer.

Astaldi said its unsecured creditors would convert their part of debt into equity securing a 28.5 percent stake in the group.

In order to repay remaining debt owed to unsecured shareholders, Astaldi will sell, among other assets, its concession division with projects such as the third Bosphorus Bridge and the Gebze-Orhangazi-Izmir motorway in Turkey.

The company’s current shareholders will see their holding reduced to 6.5 percent of the group, Astaldi said.

$1 = 0.8864 euros Reporting by Valentina Za; editing by Jason Neely and Emelia Sithole-Matarise

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