US private equity investor Lone Star has announced plans to take control of Munich-based residential property developer Isaria Wohnbau.
Lone Star has launched a tender offer of €4.5 a share for the company, valuing the business at a total of €107 mln.
Isaria's management board said that it will recommend its shareholders to accept the offer.
As part of the deal, Lone Star has also pledged to purchase all the shares from a potential future capital increase of Isaria in an amount of 50% of the existing share capital. The funds amounting to €53 mln would be used to acquire new projects and to accelerate the current projects, Isaria said.
Lone Star said it also plans to delist the company's shares from the regulated market of the Frankfurt Stock Exchange following completion of the deal.
