Spanish Colonial buys the French SFL unit for 800 million euros

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MADRID, June 3 (Reuters) – Spanish group Inmobiliaria Colonial (COL.MC) announced on Thursday that it would submit a voluntary takeover bid to buy up to 100% of its French subsidiary Société Foncière Lyonnaise (SFL) for 806 million euros ($ 977 million).

With the deal, which is expected to be finalized by August, Colonial aims to increase its exposure to prime real estate in Paris at a price below market prices, while simplifying its business structure, the company said. company.

In the first stage of the two-stage agreement, Colonial will buy back the 13% stake in SFL held by the Predica subsidiary of Crédit Agricole (CAGR.PA) for 592 million euros.

It will then launch a voluntary and mixed takeover bid for the remaining 5% of the capital not held by Predica or Colonial, valued at 214 million euros.

“It’s a way to buy what everyone wants to buy but no one is able to do it – rare, high-quality assets,” Colonial CEO Pere Vinolas said in a statement. conference call.

“On top of that, we do it with a mix of cash and securities at a price below market value,” he added.

Vinolas said Colonial would present the offer to the French Markets Regulatory Authority on Friday, but stressed that the deal had “the blessing of all necessary entities.”

He said the company sees the full absorption of SFL as a medium-term goal.

The Spanish real estate company, specializing in offices, currently holds 82% of SFL’s capital.

After the closing, the exposure of the real estate investment trust in Paris will increase in value by just over 1 billion euros and will represent more than 60% of the total portfolio of the group.

Colonial said it would compensate all willing minority shareholders of SFL with 46.66 euros and five new Colonial shares for every SFL share they buy.

The company’s chief executive, Carmina Ganyet, said the assumption was that all minority shareholders would agree to the terms.

The deal is expected to increase earnings per share in the short term and increase the company’s net asset value in the longer term, she said.

($ 1 = 0.8249 euros)

Reporting by Clara-Laeila and Nathan Allen; edited by Jesús Aguado and David Evans

Our standards: Thomson Reuters Trust Principles.


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