MADRID, June 3 (Reuters) - Spain's Inmobiliaria Colonial
on Thursday said it would submit a voluntary takeover
offer to buy up to 100% of French subsidiary Societe Fonciere
Lyonnaise (SFL) for 806 million euros ($977 million).
With the deal, which is set to close by August, Colonial
aims to increase its exposure to prime Paris real estate at a
discount to market prices, while simplifying its corporate
structure, the company said.
In the first stage of the two-step deal, Colonial will buy
the 13% stake in SFL held by Credit Agricole's Predica
subsidiary for 592 million euros.
It will then launch a voluntary mixed tender offer for the
remaining 5% equity not held by Predica or Colonial, which is
valued at 214 million euros.
"This is a way to buy what everybody wants to buy but nobody
is able to - high-quality, scarce assets," Colonial Chief
Executive Pere Vinolas said on a conference call.
"On top of that we do it with a blend of cash and securities
at a price below market value," he added.
Vinolas said Colonial would present the offer to France's
AMF market regulator on Friday, but stressed that the deal had
"the blessing of all necessary entities".
He said the company saw the total absorption of SFL as a
The Spanish real estate firm, which specialises in office
space, currently has an 82% stake in SFL.
After closing, the real estate investment trust's (REIT)
exposure in Paris will increase in value by just over 1 billion
euros and account for more than 60% of the group's total
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.
Corporate Managing Director Carmina Ganyet said the
assumption was that all minority shareholders would accept the
The deal should boost earnings per share in the short term
and increase the firm's net asset value in the longer term, she
($1 = 0.8249 euros)
(Reporting by Clara-Laeila and Nathan Allen; additional
reporting by Jesús Aguado; Editing by Barbara Lewis and Kirsten