Hotel and office investor Aroundtown said on Thursday that it has tendered a total of nearly 78% of TLG's share capital by the end of the acceptance period of its tender offer announced in October last year.
Aroundtown said that the high level of acceptance 'underlines investors' support and confidence in the value-add potential of the combined companies'.
Under the terms of the all-share deal, which has been recommended by TLG's management, TLG shareholders received 3.6 Aroundtown shares, at a €27.66 offer price per TLG share - a 3.2% premium. The operation, which is no longer subject to any closing conditions, is expected to create a new company with a combined total of €25 bn of assets.
The merger contains ‘significant synergies’ according to the parties, with overlap in Berlin, Frankfurt, Dresden, Leipzig, Hamburg, and access to Munich, Amsterdam and London, representing over half of the combined portfolio.
As a result, it is expected the pre-tax funds from operations will increase from €110 mln to €139 mln over time, according to TLG.
'The combination of Aroundtown and TLG will create the leading pan-European office/hotel/residential real estate company with a well-diversified portfolio in top tier European cities, primarily in Germany and the Netherlands, focused on the strongest asset classes,' the company said.
Shmuel Mayo, CEO of Aroundtown: 'We are pleased to see a very positive feedback on the merger from the market, which we see reflected in the high acceptance rate. With the strong support received from both shareholder groups and the large scale and strong position of the combined company within the market we feel confident that we can deliver strong long-term accretive value for all shareholders.'
