Italian property fund manager Sorgente said that it is making a takeover offer for the Milan-listed Caravaggio real estate fund through its Donatello-Comparto Iris investment vehicle. Donatello already holds a majority stake in Caravaggio and is offering EUR 2.9 per share, or a total of EUR 35 mln for the remaining 24% stake it does not own in the listed fund.
Italian property fund manager Sorgente said that it is making a takeover offer for the Milan-listed Caravaggio real estate fund through its Donatello-Comparto Iris investment vehicle. Donatello already holds a majority stake in Caravaggio and is offering EUR 2.9 per share, or a total of EUR 35 mln for the remaining 24% stake it does not own in the listed fund.
The bid, which values the fund at EUR 146 mln, represents a 25% premium to the fund's current share price.
The operation will allow Caravaggio's retail investors to exit at a premium before liquidation of the fund's real estate assets starting in 2012. Caravaggio, with a life term of eight years, owns stakes in 10 real estate assets in the country with an appraised value of EUR 148 mln.
'The bidder intends to maintain its interest in the fund after its normal holding period in an effort to avoid or manage the risks linked to a disposal in current market conditions,' Rome-based Sorgente said in a statement. The company intends to merge the two funds in the near future.
Leonardo & Co is acting as financial advisor to Donatello, while law firm Gianni, Origono, Grippo & Partners is legal advisor.
