Canadian asset manager Brookfield has managed to pursuade the majority of Befimmo's shareholders to sell their stakes in the firm, following a €1.35 bn takeover bid launched in February of this year.
Brookfield's Belgian investment arm, RE Invest Belgium, has successfully won over half of Befimmo's shares through its voluntary offer, pricing the shares at €47.50, which closed on 5 July. This price was more than 20% below Befimmo's net asset value, but a 52% premium on the share price shortly before the offer was made.
While this means that the 50% +1 acceptance threshold condition has been fulfilled, rendering the offer now unconditional, the share volume is not enough to allow Brookfield to delist Befimmo from the stock exchange.
Accordingly, Brookfield has now extended its offer, with a new acceptance period due to reopen on 29 August and close on 16 September.
Said Brad Hyler, managing partner and head of European Real Estate at Brookfield: 'The overwhelming support from Befimmo’s management, board of directors and shareholders underscores our conviction that the offer represents the best path forward for all stakeholders and provides Befimmo’s shareholders an opportunity for immediate liquidity at a compelling valuation.
'We invite all shareholders who have not yet tendered their shares to do so during the subsequent acceptance period.'
Brookfield has so far acquired 22.7 million shares, 79.9% of all stocks in the company. Together with the part held by Befimmo, the Canadian firm controls 85% of the Belgian firm. However, this figure falls between two strategic goals for the firm.
If Brookfield had only captured less than 70% of shares, it planned to keep Befimmo on the stock exchange as a regulated real estate firm (GVV), but it now holds too many shares to access this favourable tax regime. However, it needs a minimum 95% holding to eventually get total control and delist the firm.
Market watchers think that Brookfield may yet win shareholders over, taking into account increasing market volatility since its original offer - made the day after war broke out in Ukraine.
Befimmo CEO Jean-Philip Vroninks added: 'We are pleased with the successful outcome of the tender offer. This transaction is a milestone event as Befimmo moves forward ahead to the next chapter of the company’s
development.'
Vincent Querton, chairman of the board of directors of Befimmo said: 'We are very satisfied with the overwhelming acceptance of the offer. This transaction provides our shareholders with significant immediate cash value and is a testament to the future partnership between our high-quality team and Brookfield.'
