Hispania Continues Takeover Bid For Realia Despite FCC’s Withdrawal

12 February 2015 – El Economista

The company, owned by Soros and Paulson, does not intend to increase its bid.

Hispania is continuing with its plans to buy Realia, the real estate company owned by Bankia and FCC, even though the construction company has decided not to sell its 36.88% stake.

The company, whose main shareholders are the business tycoons George Soros (pictured above) and John Paulson, announced a voluntary takeover for 100% of the real estate company at a price of €0.49 per share; and sources close to Hispania have confirmed to El Economista that they are going to proceed without making any changes to their offer. “The process is advancing normally, they are waiting for the CNMV to approve the prospectus and then they will launch a takeover bid with the same conditions as the one already announced”.

The company, which is managed by Azora, took this decision after holding a meeting to discuss the new situation following FCC’s withdrawal.

The group, controlled by the Mexican Carlos Slim, explained through a notification to the CNMV that “the decision reflects the fact that we are reviewing our investment and divestment plans, following the (capital) increase, which allowed us to strengthen the Group’s equity and financial situation”. Moreover, Slim, who took on a controlling stake in the construction company as a result of the (capital) increase, is also evaluating the legal options that would allow him to purchase Realia through one of his other companies.

Below market price

Hispania’s offer was never well received by the market, as it was considered to have offered a knock-down price for the real estate company, at 28% below Realia’s list price. Now, following FCC’s announcement, the situation is more complex, as Hispania needs its offer to be approved by 55% of its shareholders.

Besides the construction company, Realia’s second largest shareholder is Bankia, which controls 24.95%. The entity is under an obligation (having been mandated by Brussels) to sell its industrial holdings, however, it still has a margin of two years remaining to undertake these divestments.

Original story: El Economista (by Alba Brualla and Virginia Martínez)

Translation: Carmel Drake

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