Spain's Inmobiliaria Colonial said that it is considering a merger with its 98%-owned subsidiary Société Foncière Lyonnaise to streamline its operations.
The merger, through which Colonial would absord SFL, would involve SFL shareholders receiving new Colonial shares, with the process expected to begin by early 2025.
This move aims to capitalize on their shared focus on long-term urban development in major European cities. 'For over twenty years, the two companies have shared the deeply held belief that the key to creating long-term value lies in developing prime urban assets and building a unique mixed-use portfolio in Paris, Madrid and Barcelona,' Colonial and SFL said in a joint statement.
Colonial upped its stake in SFL in 2021, when it launched an €800 mln voluntary takeover offer for the French subsidiary. In 2018, the Spanish firm spent roughly €718 mln to buy an additional 22% stake in SFL from the Qatari sovereign wealth fund QIA, taking its controlling stake in the Paris-based office firm to 81%.
