Hamburg-based Tag Immobilien is launching a EUR 174 mln voluntary takeover offer for Cologne-based competitor Colonia Real Estate. In a statement last week, the company offered to pay EUR 5.5 for each Colonia share, representing a 30% premium on the company's average weighted market price for the past three months.
Hamburg-based Tag Immobilien is launching a EUR 174 mln voluntary takeover offer for Cologne-based competitor Colonia Real Estate. In a statement last week, the company offered to pay EUR 5.5 for each Colonia share, representing a 30% premium on the company's average weighted market price for the past three months.
If successful, the operation would create a company with over EUR 4.3 bn of assets under management. Tag said that it plans to finance the acquisition with the sale of roughly 12 million new shares to its shareholders and the issue of EUR 70 mln in convertible bonds
'Tag aims to expand its current strategic stake of over 21.4% in Colonia in order to exploit synergies by merging the companies overlapping businesses in residential real estate and asset managements,' it said. The company plans to publish the takeover offer in mid-December 2010 on the basis of a BaFin-approved offer document.
Kempen & Co. and Close Brothers Seydler Bank will serve as joint lead managers and joint book runners of the capital increase and the convertible bond issue.
