Italy's CDP to convert loans to Atlantia unit into equity - deputy minister
MILAN, July 16 (Reuters) - Italy's deputy Industry minister said on Thursday that loans granted by state lender Cassa Depositi e Prestiti (CDP) to Atlantia's motorway unit would be converted into shares under a proposed deal with the Italian government.
Italy will bring thousands of kilometres of roads back under state control after the powerful Benetton family agreed to give up its stake in Atlantia's motorway unit ATL.MI, Autostrade per l'Italia (ASPI), to avoid the threatened cancellation of its lucrative operating concession.
Under the deal CDP will take a stake of about 33% in Atlantia's motorway unit through a cash call, sources close to the matter said on Wednesday.
"CDP is ASPI's and Atlantia's creditor, we are talking about billions of euros in loans," Stefano Buffagni told Radio24. "If you are not able to repay your debt, you convert it into equity, as it often happens."
(Reporting by Stefano Bernabei, writing by Gianluca Semeraro, editing by Maria Pia Quaglia)
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