Regional German bank Norddeutsche Landesbank (Nord/LB) plans to launch a EUR 36.09 per share bid for listed mortgage bank Deutsche Hypothekenbank, Nord/LB said on Monday. The offer values Hanover-based Deutsche Hypo at EUR 485 mln and would rank Nord/LB as the third-largest mortage bank in Germany based on new real estate financing business. Nord/LB plans to make an official offer to Deutsche Hypo shareholders on 5 December.
Regional German bank Norddeutsche Landesbank (Nord/LB) plans to launch a EUR 36.09 per share bid for listed mortgage bank Deutsche Hypothekenbank, Nord/LB said on Monday. The offer values Hanover-based Deutsche Hypo at EUR 485 mln and would rank Nord/LB as the third-largest mortage bank in Germany based on new real estate financing business. Nord/LB plans to make an official offer to Deutsche Hypo shareholders on 5 December.
The acquisition would take the form of a strategic investment, with Deutsche Hypo being run as a participation and continuing to operate under its own name. Deutsche Hypo's two core activities, international commercial real estate financing and its capital market business, would be expanded further. No redundancies are expected.
Deutsche Hypo's management board has welcomed the offer, describing Nord/LB as an 'ideal investor and partner'. If the takeover goes according to plan, the deal should be finalised by January 2008.