Spanish-listed European office investor Colonial has bought out most of the minority shareholders in its French subsidiary Societe Fonciere Lyonnaise (SFL), raising its stake to 98.33%.
The firm said that the tender offer for the 5% shares in SFL held by minority shareholders has closed with an acceptance of 4.2% of the share capital corresponding to 1.801.231 shares of SFL.
Consequently, Colonial consolidates its position as a key player in European prime offices and the largest Spanish REIT by market value, according to the firm.
Juan José Brugera, chairman of Colonial, said: 'The successful closing of this transaction reinforces our bet for prime assets by increasing our exposure to Paris’ office market, the largest in the Eurozone.
'This strategy, focused on value creation, has allowed Colonial to become a leading company in the European office sector, and the largest Spanish REIT by market value.'
The favourable outcome of the tender offer culminates a transaction initiated during the first semester of 2021, when Colonial’s shareholders approved reinforcing its stake in its French subsidiary, SFL, which at the time amounted to 81.7%.
This was primariliy achieved through the acquisition of an additional 12.9% in SFL held by Predica, a subsidiary of Crédit Agricole Assurances, and the launch of a mixed, voluntary tender offer for the remaining 5% held by SFL minority shareholders.
This offer to SFL’s minority shareholders consisted of a consideration of €46.66 and five newly issued shares of Colonial (listed in Madrid and Barcelona) for each SFL share.
Following the acceptance of 84% of SFL’s minority shareholders, the consideration to be paid by Colonial amounts to €84 mln in cash and 9 million of newly issued Colonial shares.