Altarea Cogedim in exclusive talks to buy French developer Pitch

French listed property group Altarea Cogedim said on Tuesday that it has entered into exclusive negotiations to take over the entire share capital of local developer Pitch Promotion.

Created in 1989 by Christian Terrassoux, Pitch Promotion is a major property developer in France, with revenues of nearly €300 mln in its last fiscal year. The company's primary business is the development of residential and office properties.

The company employs over 160 employees and has offices in Ile-de-France and throughout France with seven locations in major regional cities (Toulouse, Lyon, Aix-en-Provence, Bordeaux, Montpellier and Nice).

'The alliance between Altarea Cogedim and Pitch Promotion should generate property development and marketing synergies that can be harnessed to conquer new markets,' Altarea said in a statement. The acquisition is expected to close in February 2016.

As part of the deal, Pitch Promotion shareholders will reinvest a significant portion of the proceeds in Altarea to take part in a capital increase. Altarea will issue 190,000 new shares, representing 1.5% of its capital, which will be subscribed at a price corresponding to the weighted average share price of the last three trading days before the announcement, less a 5% discount.

Christian Terrassoux is expected to join the supervisory board of Altarea Cogedim. He will also sit on the company's strategic committee while remaining chairman and CEO of Pitch Promotion.