Colonial Explores Exercising the Right to Buy For SIIC de Paris

21/05/2014 – Expansion

Colonial has always been in favour of Realia´s selling its 58.95% stake in the French affiliate as the real estate firm knew that the potential buyer will submit a takeover bid for the entire vehicle. Then, Colonial could sell the 30% it holds in SIIC de Paris through its French branch Société Foncière Lyonnaise (SFL).

Yesterday, Realia sealed a deal on the sale of SIIC with a considerable 11% discount on €22 per share price (total of €558.9 million) to Eurosic. Even though initially Colonial has ruled out bidding with the inflated shares price, now it started to consider execution of its pre-emptive right and, for instance, submit a takover bid for the entire firm.

Its French branch SFL disposes of equity necessary to close the purchase thanks to two recent bond issues for €700 million. The company is held in majority by Colonial (53.1%), Qatar Investment (22.2%), Predica (12.9%) and Reig Capital (4.4%).

Due to the sudden change of mind of the Spanish real estate firm, the sale of SIIC de Paris will not be as rapid as FCC and Bankia (controlling Realia) have expected. Colonial has got 30 days for making the final decision.


Original article: Expansión (by Marisa Anglés & Rocío Ruiz)

Translation: AURA REE