The bidding war for French REIT Société de la Tour Eiffel (STE) is heating up after major shareholder Chuc Hoang launched an offer of €55 per share for the company, outbidding mutual insurer SMABTP which offered €53.
The bidding war for French REIT Société de la Tour Eiffel (STE) is heating up after major shareholder Chuc Hoang launched an offer of €55 per share for the company, outbidding mutual insurer SMABTP which offered €53.
The bid by Chuc Hoang values STE at €344 mln, and is being partly financed by funds advised by US private equity group Colony Capital through the subscription of bonds that are partly redeemable in STE shares, for up to 10% of the firm.
Hoang, who already owns just over 30% of STE, said he aims to keep STE's REIT status, which would bind him to a holding of no more than 60%. He intends to adjust the company's strategy and extend debt maturities before resuming property acquisitions to rebalance its portfolio.
The counter offer comes as a big blow for SMABTP which in April launched an improved €53 a share cash offer which was recommended by STE's management.
SMABTP, the leading insurance group in France for the construction and public works sector, said it will withdraw the offer if it does not obtain at least 40% of Tour Eiffel's share capital. It did not guarantee to STE that it will maintain its REIT status.
Hoang had previously tried to halt the SMABTP bid legally but his claims were rejected by the Paris commercial court.