MILAN, June 8 (Reuters) - Banca Profilo's shareholders approved on Monday a 110 million euro capital increase as part of a deal to let private equity firm Sator Capital Ltd take control of their tiny bank. Shareholders also voted in favour of appointing 11 new members to the board, among whom will be Sator Capital's owner, Matteo Arpe, as chairman.
One of Italy's best known bankers, Arpe entered a deal with the bank and its shareholders on Feb. 19 to buy at least 51 percent of Banco Profilo by taking part in a capital increase.
The capital increase will be done in two tranches -- one worth 30 million euros offered to all shareholders, and another for up to 80 million euros, reserved to Sator.
Both offers will be at 0.20 euros per share.
Sator will subscribe to 70 million euros of the operation's total on July 6 with an option to take up another 10 million euros at a later stage, outgoing Chairman Sandro Capotosti told the assembly.
Banca Profilo shares -- which have restricted trading hours -- ended 5 percent up to 0.84 euros.
Arpe, whose Capitalia bank was bought by UniCredit in 2007, reiterated his plans to restructure the bank and focus on private banking.
"For now we will dedicate ourselves to internal growth," he said.
In 2008, Banca Profilo ran a 74 million euro loss. (Reporting by Gianluca Semeraro; writing by Gilles Castonguay; editing by Jon Loades-Carter)