Investors Advent International and Centerbridge Partners have announced plans to launch a new, improved takeover offer for German lender Aareal.
The two partners, which in February failed to get enough support for their €31-a-share takeover of Aareal Bank, said they have concluded talks with shareholders holding in total 37% of voting rights in the company, with a view towards making a potential new takeover offer of €33 a share.
The shareholders include Petrus Advisers, Talomon, Teleios and Vesa, who have committed to accept the offer for their shares.
Advent and Centerbridge have set a minimum acceptance level of 60% for the potential takeover offer to go ahead.
To overcome the statutory one-year blocking period for a renewed bid, the bidder company will have to require approval from Aareal Bank's corporate bodies and committees as well as from the German Federal Financial Supervisory Authority (BaFin).
In the event the bid takes place, Advent and Centerbridge intend to support Aareal’s organic and inorganic growth across all segments by retaining profits in the years to come. The retention of profits, based on a business plan supported by the bidder for the coming years, would generate substantial additional equity for exploiting attractive growth opportunities in all three segments.
Aareal plans to increase the lending portfolio to up to €40 bn over the next five years. This growth is to be fuelled by broadening the lending business in the bank's traditional asset classes and property types, but also by tapping new and attractive market segments and property types with the support of the investors.
