Luis Portillo, president of Colonial and Inmoracal, has said the merger of the two Spain-based companies should be completed by the first quarter of 2007 or the beginning of the second.
Luis Portillo, president of Colonial and Inmoracal, has said the merger of the two Spain-based companies should be completed by the first quarter of 2007 or the beginning of the second.
Speaking at a press conference after an extraordinary general meeting to approve the merger of the two groups, Portillo said he does not 'rule out capital hikes to increase the liquidity of the new group resulting from the merger.' He also aims for it to have a free float of about 20%. The new company will be called Colonial and will focus on the French market.
Turning to the group's expansion plans, Portillo said that Inmocaral is seeking further opportunities in the French property market after completing its bid for the 20.5% of Colonial's Societe Fonciere Lyonnaise (SFL). Inmocaral was obliged under French law to launch a full bid for SFL when it acquired Colonial.
The chairman noted that SFL's debt is low, allowing the new Colonial to seek further investments in France. The Spanish entrepreneur justified this interest by saying Spain lacks opportunities. 'There is no sense in buying properties in Spain. There is not such a company qualified for our assets', he explained. These assets are valued around EUR 6 bn.
