The CNMV Permits Hispania´s €157 Million Takeover Bid of Realia

23/12/2014 – Expansión

Spain’s National Securities Market Commision (CNMV) has begun processing the public takeover bid that Hispania has proposed for the 100% takeover of Realia, a real estate company that is currently controlled by FCC and Bankia.

The REIT (Real Estate Investment Trust), owned by George Soros, has raised its offer at a price of €0.49 per share, bringing the amount of the transaction to €157.7 million. Nevertheless, the price is 20% less than the approximately €0.600 at which Realia currently trades.

The market watchdog has agreed to accept the bid application, but reminds the company that this admissibility “does not constitute a decision on the authorization of the takeover bid or any of its terms.” As indicated, this authorization will occur “in accordance with the terms and condition” under the law.

Last week, Hispania sent the application to the CNMV for authorization of the tender offer, as well as the prospectus of the operation and a guarantee for the full amount of the transaction issued by Santander and CaixaBank .

Hispania formally submitted its offer on the same terms and conditions announced late last November, and after reaching an agreement with the three funds currently listed as major creditors of Realia.

With this agreement, the REIT has already secured one of the two aspects that were conditions of the offer. The second requires the bid to achieve an acceptance of at least 55% of the real estate company’s capital.

Make it to the list of REITs

Hispania’s plans for Realia after the public takeover bid include converting the company into a listed REIT, which will continue to trade on the stock market and securing the position of the firm, owned by Soros, as a leading shareholder with a stake of up to 58% of its capital.

The new REIT, Realia, will focus on the management of its assets and proceed to sell the land and housing business that it still owns.

Realia is the subject of a possible takeover bid just one year after both the company and its two leading partners handed the sale over to Goldman Sachs. FCC and Bankia control 36.8% and 24.9% of its capital, respectively.

Original article: Expansión (by Europapress)

Translation: Aura REE

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