• Transaction / Assets
    10.6% of Testa
  • Seller
  • Buyer
  • € MM

Santander Sells Another 10.6% of Testa to Blackstone for €201M

21 November 2018 – Expansión

Santander has sold another 10.62% of the share capital in the Socimi Testa Residencial to Blackstone for €201 million, whereby reducing its stake in the rental home Socimi to 18%. Meanwhile, the US fund now controls 80.63% of the entity’s shares.

The bank chaired by Ana Botín has added this sale to another one involving 7.76% of share capital that it already agreed with the US fund. The new sale from Santander came about after Blackstone launched an offer to purchase any Testa shares owned by minority shareholders, a total of 702,508 shares, representing 0.53% of its share capital, according to reports filed by the fund with the Alternative Investment Market (MAB).

Blackstone offered the owners of those shares €14.32 per share, the same price it paid Santander, BBVA, Merlin and Acciona for the stakes that those companies and banks sold it, which together amount to the aforementioned 80.63% stake. The offer price is 3% higher than the listing price (€13.90) at which Testa debuted on the MAB at the end of July and represents a market valuation for the company of €1.895 billion.

The amount is also higher than the €14.10 price at which the firm was trading when Blackstone launched its offer in the middle of last month, but below the price at which the Socimi’s shares are currently trading. The offer by the fund to Testa’s minority shareholders, estimated to amount to €10.06 million in total, began yesterday and will last for a month until 20 December.

Blackstone has convened two consecutive extraordinary shareholders meetings for Testa to be held on 18 and 21 December with the aim of closing the operation to purchase this Socimi and restructure its Board of Directors.

With this operation, the fund from the USA is strengthening its position as the largest owner of rental homes in Spain, with a portfolio of around 24,000 properties, and is ratifying its position as one of the largest owners of all types of real estate assets, given that it now holds assets worth more than €20 billion in its portfolio.

Original story: Expansión

Translation: Carmel Drake