Allianz, Covéa launch EUR 540m bid for FPF

German insurer Allianz is teaming up with its French peer Covéa to launch a bid for Fonciere Paris France (FPF) a month after the French real estate investment trust saw an offer from Fonciere des Regions collapse in the wake of the recent market turmoil.

The new bid, which will be launched by the two institutional investors through their Paris Hôtels Roissy Vaugirard (PHRV) unit, reflects a price per share of EUR 100, valuing FPF at roughly EUR 540 mln.

Under the terms of the proposed acquisition, PHRV is committing to buy all the FPF shares which it does not already own alone or in concert with Cofitem-Cofimur, representing a total investment of EUR 414 mln. Currently, PHRV individually owns 5.85% of FPF's share capital, and as much as 24.37% in concert with Cofitem-Cofimur, whose majority shareholders are Allianz and Covéa.

PHRV, which is being advised by Natixis, is controlled by Allianz (31.4 %), Covéa (31.4 %) and Cofitem-Cofimur (31.1 %). The latter said that it is not planning to further increase its interest in FPF.

Allianz and Covéa will not proceed with their offer if the number of tendered shares does not allow them to hold at least 50.01% of FPF's share capital and voting rights. Should PHRV tender over 60% of FPF, an agreement has been signed with Foncière des 6ème et 7ème arrondissements de Paris to allow it participate in the acquisition so that FPF will continue to comply with its 60% maximum shareholding limit under the REIT regime.

The move comes a month after Fonciere des Regions said its EUR 460 mln bid for FPF would not go ahead due to volatile market conditions.