Italease approves JV with Germany's VR Leasing

MILAN, Oct 11 (Reuters) - Italy's Banca Italease SpA (BIL.MI: Quote, Profile, Research, Stock Buzz) has signed a letter of intent for a joint venture in which Germany's VR Leasing will pay 369 million euros ($506.4 million) for a 60 percent stake, Italease said on Saturday.

The accord is in the leasing and factoring markets and will give Italease a strategic alliance, it said in a statement.

VR Leasing is 83.5 percent owned by the DZ Bank Group FDGBGg.F, with the rest owned by WGZ Bank (WSTGgb.F: Quote, Profile, Research, Stock Buzz). "The deal sets the way for a strategic alliance, with a highly visible and leading partner at a European level," Italease said.

After suffering huge losses from its investments in derivatives contracts last year, Italease restructured under new management helped by a 700 million euro capital increase.

The business unit will include about 8 billion euros of Italease's receivables, mostly from its direct and banking channels, as well as receivables from customers for factoring transactions of about 2 billion euros.

It will include a debt portfolio of 9.7 billion euros.

The unit will exclude the receivables portfolio of lease receivables mostly from intermediary agents and suppliers, medium- or long-term corporate loans, and retail mortgages, all of which totalled about 13 billion at the end of March. It also excludes a portfolio of debt "of a similar amount", Italease said.

VR Leasing has to approve the deal by Nov. 30. The deadline for a definitive accord is Dec. 12.

In a separate statement, Italease said its controlling shareholder pact of Banco Popolare (BAPO.MI: Quote, Profile, Research, Stock Buzz), Banca Popolare dell'Emilia Romagna (EMII.MI: Quote, Profile, Research, Stock Buzz), Banca Popolare di Sondrio (BPSI.MI: Quote, Profile, Research, Stock Buzz) and Reale Mutua di Assicurazioni had extended its accord for 28 months past its expiry date of Feb. 28, 2009.

Reale Mutua will cut its holding to 3 percent from 5.58 percent and member Banca Popolare di Milano (PMII.MI: Quote, Profile, Research, Stock Buzz) will not renew the pact after the accord expires, it said. The pact's stake thus will fall to 32.78 percent of shares from 36.96 percent. (Reporting by Ian Simpson, editing by Mike Peacock)