Puma Brandenburg, the Guernsey-registered closed-end fund that invests in German real estate, is to be taken over by UK investment banking group Shore Capital.
Puma Brandenburg, the Guernsey-registered closed-end fund that invests in German real estate, is to be taken over by UK investment banking group Shore Capital.
The directors of Puma Brandenburg announced they had reached agreement with Marble, an indirect, wholly owned subsidiary of Shore Capital, on the terms of a recommended cash offer that would lead to the amalgamation of Puma Brandenburg and Marble.
The offer of 60 pence per share values Puma Brandenburg at £83 mln (EUR 97 mln). This represents a premium of approximately 40% to the share's closing price on 10 June 2009.
In its report to the financial year to end-March 2009, Puma Brandenburg said it held a property portfolio valued at EUR 643 mln, reflecting a devaluation of almost EUR 50 mln compared with the previous year.
Recommending the offer from Marble, the independent directors of Puma Brandenburg noted Puma was a small-cap leveraged property company whose shares were illiquid. 'In the short to medium term, Puma Brandenburg may face further value and rental erosion which would put pressure on its performance and its financial covenants', the directors said in a statement. The price of Puma Brandenburg shares has fallen despite a significant buy-back programme and stake building by Shore Capital ; and the offer from Marble gives shareholders the opportunity for an exit on fair and reasonable terms.'
