The Investment Corporation of Dubai (ICD) has brokered a deal with Colonial's shareholders to give the sovereign wealth fund a majority stake in the troubled Spanish property company. In a statement sent to the Spanish securities watchdog (CMNV) on Tuesday evening, ICD said that it is acquiring a 50.4% stake in Colonial at EUR 1.19 per share in a deal that will see Colonial hiving off its land and development holdings in a separate company, called Newco. Colonial's existing shareholders will be issued new shares in Newco.
The Investment Corporation of Dubai (ICD) has brokered a deal with Colonial's shareholders to give the sovereign wealth fund a majority stake in the troubled Spanish property company. In a statement sent to the Spanish securities watchdog (CMNV) on Tuesday evening, ICD said that it is acquiring a 50.4% stake in Colonial at EUR 1.19 per share in a deal that will see Colonial hiving off its land and development holdings in a separate company, called Newco. Colonial's existing shareholders will be issued new shares in Newco.
In the statement, the shareholders estimate that Newco will have assets worth EUR 2.1 bn and debt of just under EUR 1 bn. The new deal values the property rental business being acquired by ICD at EUR 1.9 bn. ICD's earlier bid valued Colonial as a whole at EUR 3 bn.
The deal will only go ahead if Colonial's shareholders can reach an agreement with the property company's banks before 19 March. If the new bid is successful, ICD will be obliged under market rules to make bid for the remaining shares in Colonial.
The Investment Corporation of Dubai is the investment arm of The Government of Dubai and is headed by prime minister and vice-president Sheikh Mohammed Bin Rashid Al Maktoum.
