German listed property company TLG Immobilien has officially launched its friendly all-share takeover bid for peer WCM, after receiving the green light from Germany's regulatory authorities BaFin.
The bid for 100% of the share capital of WCM offers one new TLG Immobilien share for each 5.75 WCM shares, implying a price of €3.36 per share.
The offer period commenced with the start of trading at the Frankfurt Stock Exchange on 27 June 2017, and is expected to expire on 5 September 2017. Within this first period, WCM shareholders can accept the offer and tender their shares. If the offer conditions are fulfilled at the end of the acceptance period, there will be a mandatory additional acceptance period of two weeks.
TLG was listed by US private equity firm Lone Star on Frankfurt Stock Exchange in 2014, and Singaporean sovereign wealth fund GIC held 13% of the shares at end-2016. TLG's portfolio of office, retail and hotels was valued at €2.1 bn in March this year. The main focus is on office properties in Berlin and Frankfurt/Main, and the eastern German cities of Dresden, Leipzig and Rostock.
A combination of TLG and WCM would own almost €3 bn of German real estate.
UBS Europe SE, Frankfurt/Main, Germany, are acting as settlement agent with regard to the offer.
