The German subsidiary of UK property company Grainger has published its tender offer for the acquisition of the shares in FranconoRheinMain AG, a residential property company listed on the Frankfurt Stock Exchange. Grainger is the largest listed residential property company in the UK.
The German subsidiary of UK property company Grainger has published its tender offer for the acquisition of the shares in FranconoRheinMain AG, a residential property company listed on the Frankfurt Stock Exchange. Grainger is the largest listed residential property company in the UK.
At the end of January this year Grainger FRM GmbH exchanged contracts on the conditional acquisition of a 54% stake in FranconoRheinMain from Franconofurt. In the offer published on Monday, Grainger's German unit is making a cash offer of EUR 1.79 per share, a 19.3% premium to the price agreed with Franconofurt.
Grainger expects to pay a total of EUR 45.7 mln from its own resources for FranconoRheinMain. The offer is conditional on acceptances representing 70% of FranconoRheinMain shares, including the shares that may be held by Grainger and the shares to be acquired from Franconofurt.
Grainger already owns over 4,500 residential units in Germany with a market value at end-September 2007 of EUR 346 mln. Following the completion of the acquisition of FranconoRheinMain, Grainger will have an interest in approximately 6,800 units in Germany with a market value of close to EUR 500 mln.
Rupert Dickinson, CEO of Grainger, said: 'We will secure a strong portfolio of assets, which we believe will complement our existing holdings and provide us with an opportunity to extract latent value through the application of our property and asset management capabilities.'
