A group led by US private equity firm JC Flowers & Co has published its offer to buy up to 24.9% of Hypo Real Estate. The offer is for up to 50.1 million shares in Hypo Real Estate, Germany's second largest commercial real estate lender, at a price of EUR 22.50 per share. This comes to a total maximum consideration of EUR 1.1bn. The offer period runs to 23 June.
A group led by US private equity firm JC Flowers & Co has published its offer to buy up to 24.9% of Hypo Real Estate. The offer is for up to 50.1 million shares in Hypo Real Estate, Germany's second largest commercial real estate lender, at a price of EUR 22.50 per share. This comes to a total maximum consideration of EUR 1.1bn. The offer period runs to 23 June.
The bidders’ group include Japanese lender Shinsei Bank, whose largest shareholders is a group led by JC Flowers, and fellow private equity firm Grove International.
The investors said that they are medium-term oriented and focused on strengthening Munich-based Hypo Real Estate. 'This includes potential business expansion opportunities in German and international markets, including the Japanese market,' the Flowers group indicated. The offer is subject to conditions, including a minimum acceptance of at least 20% of the lender's capital. The investors said they also wanted adequate representation on the Hypo Real Estate board.
Hypo shares plunged in January after the lender revealed hefty writedowns related to the US subprime crisis but has recovered since JC Flowers announced its bid in mid-April, although it is down from a high of EUR 23 reached in the wake of the bid announcement.
Morgan Stanley and Hengeler Mueller have advised the investor group on the bid.
Funds advised by JC Flowers acquired 26.6% of German lender HSH Nordbank in 2006. Funds managed by affiliates of Grove, together with its partner Hochtief, acquired Deutsche Bahn real estate subsidiary Aurelis last year.
