The board of Hypo Real Estate Group has welcomed 'in principle' the news that a group of investors led by US private investor JC Flowers intends to make a public offer for 24.9% of the shares in Germany's second-largest commercial real estate lender.
The board of Hypo Real Estate Group has welcomed 'in principle' the news that a group of investors led by US private investor JC Flowers intends to make a public offer for 24.9% of the shares in Germany's second-largest commercial real estate lender.
Hypo Real Estate's share price has tumbled since the group surprised the market in January with hefty writedowns linked to the subprime mortgage crisis.
The JC Flowers-led consortium is seeking to buy just over 50 million Hypo Real Estate shares at EUR 22.50 each. In a statement on Wednesday, Hypo Real Estate noted the offer was equivalent to a premium of 25.3 % on the volume-weighted three-month average price the day before (EUR 17.95). Hypo's shares gained almost 25% on the news of the bid to close at EUR 23.
Hypo's board said it had supported the preparation of the bid, adding that after reviewing the draft offer document, the management and supervisory boards will provide a statement with reasons commenting on the offer including in particular the offer price.
