Spanish property company Colonial said its merger with peer Inmocaral group was approved by both boards with an agreement for a share swap of 40 Inmocaral shares valued at EUR 0.12 each for every three Colonial shares valued at EUR 3, Spanish newspaper Cinco Dias has reported.
Spanish property company Colonial said its merger with peer Inmocaral group was approved by both boards with an agreement for a share swap of 40 Inmocaral shares valued at EUR 0.12 each for every three Colonial shares valued at EUR 3, Spanish newspaper Cinco Dias has reported.
In a statement, Colonial said the boards will also propose a EUR 219.3 mln capital hike to Inmocaral shareholders. Inmoracal currently holds a 93.41% stake in Colonial, after completing a EUR 3.5 bn takeover bid. The extra capital will be raised thorough the release of 52.5 million shares at EUR 0.12 per share.
International banks Citigroup and Calyon were appointed by property companies Inmoracal and Inmobiliaria Colonial to value and decide on the stock exchange rate for their mega merger, expected early next year. The merger is to create the second biggest real estate company in Spain after Metrovacesa. The group resulting from it will be listed on the stock exchange and will use the Colonial name. It will own assets for EUR 8.5 bn, and 3.2 million m2 of plots of land in Andalucia, Cataluna and Madrid.
Inmoracal told the CNMV, Spain's Commission on Stock Exchange, that the merger ‘will facilitate the reorganization of the existing debt in Inmoracal, Colonial and France's property investment firm Societe Fonciere Lyonnaise (SFL) controlled by Colonial.
