Financial investors consider new bid for Aareal Bank
Dhe financial investors Advent and Centerbridge are still interested in the company after a failed takeover attempt Aareal Bank. The commercial real estate financier announced on Tuesday morning in Wiesbaden that the two financial investors were considering a new takeover bid. Now the bidders want to dig even deeper into their pockets. The bank values the offer of EUR 33 per share under consideration at almost EUR 2 billion. The major shareholders, who have been reluctant to date, are going along this time, as the prospective buyers and Aareal Bank announced on Tuesday morning.
The Aareal share price continued to rise on the financial market after the forthcoming new bid was leaked the day before. That was on Monday SDax The paper listed went on sale at a price of EUR 31.40 – a jump of around eight percent. At EUR 31.90, the price has meanwhile reached its highest level for more than two years. In pre-market trading on Tuesday, the share on the Tradegate platform continued to rise to over 32 euros.
At the beginning of February, Advent, Centerbridge and the Canadian pension fund CPPIB failed with their joint takeover bid due to resistance from major shareholders. Even an increase in the offer from 29 to 31 euros per share and a minimum acceptance threshold lowered to 60 percent did not lead to success. The hedge funds Petrus Advisers and Teleios had not only refused the offer with their Aareal shares, but also called on other shareholders not to accept it.
However, Advent and Centerbridge have now reached an agreement with Petrus, Teleios and the other major shareholders Vesa and Talomon. According to the message from the potential bidders, they have agreed to accept the new offer under consideration. The four major shareholders would tender a total of 37 percent of the Aareal shares or sell them to the bidders outside of the takeover bid. According to the bank, this time the financial investors are considering a minimum acceptance threshold of no more than 60 percent. They would only have to win over shareholders with around 23 percent of the shares.
Meanwhile, Petrus, Teleios, Vesa and Talomon are said to join Advent and Centerbridge’s group of investors. According to the announcement by Advent and Centerbridge, they have agreed to invest parts of the purchase price received in a long-term indirect stake of around 20 percent in the bidder company. At Aareal Bank, there is talk of “exclusively non-voting shares” for the four previous major shareholders. And: “A direct influence of these investors on the Aareal Bank Group would thus be excluded.” In addition, the group of investors would probably again belong to the CPPIB pension fund.