French REIT Société de la Tour Eiffel (STE) is recommending shareholders accept an improved cash offer made by French mutual insurance group SMABTP.

French REIT Société de la Tour Eiffel (STE) is recommending shareholders accept an improved cash offer made by French mutual insurance group SMABTP.

In a statement, STE said that its board 'unanimously considers that the improved offer [..] is in the best interest of the company, its shareholders and its employees'.

'The price of €53.0 per share is fair and accurately reflects the value of the shares,' the French landlord said. The offer price represents a premium of nearly 10% over the weighted average market price over the 12 months preceding the filing of the initial offer.

SMABTP announced last week that it was raising its takeover bid for French REIT STE by 10.4% to €53 per share. The cash offer values the Paris office landlord at around €330 mln and compares to a price of €48 per share offered by SMABTP back in late January. At the time, STE advised its shareholders to accept the offer although it added that the bid did not 'sufficiently reflect the company's intrinsic value'.

SMABTP also said that it will withdraw the offer if it does not obtain at least 40% of Tour Eiffel's share capital. Businessman Chuc Hoang, who currently owns a 29.5% stake in STE, is opposing the bid by SMABTP, which closes on May 23.

SMABTP is the leading insurance group in France for the construction and public works sector.