French family-run business SGP has confirmed that it is in talks about a potential bid to buy London-listed global real estate advisory firm DTZ. The French company already owns 55% of DTZ.
French family-run business SGP has confirmed that it is in talks about a potential bid to buy London-listed global real estate advisory firm DTZ. The French company already owns 55% of DTZ.
SGP also confirmed to news wire Reuters that it is in talks with French-based banking group BNP Paribas Real Estate about DTZ. Earlier BNP Paribas declined to comment on a newspaper report suggesting that it planned to buy DTZ from SGP and merge it with its own real estate arm, BNP Paribas Real Estate.
UK newspaper The Daily Telegraph suggested on Thursday that the real estate arm of French banking giant BNP Paribas has an 'understanding of a deal' to acquire DTZ from SGP.
Under a plan codenamed 'Project Singapore', according to the Daily Telegraph, SGP would first take DTZ private and then sell it on to BNP Paribas Real Estate. BNP Paribas intends to merge the UK firm with its own real estate business before spinning it off and floating it in Paris within five years, according to the newspaper.
SGP has not made a formal bid for the remaining 45% of DTZ's shares but the newspaper said an offer of 60p per share is being considered, valuing the UK company at £162 mln (EUR 186 mln). DTZ's shares were trading at 44.58 pence in early trading on Thursday, a huge leap from the start of week at around the 30 pence mark.
On Wednesday DTZ confirmed it was holding talks with various parties after receiving 'a number' of takeover approaches. The announcement came in response to the steep rise in the company's share price.
