Two large German commercial real estate groups, Aroundtown and TLG, are forging ahead with their planned billion-dollar merger. On Tuesday, Aroundtown presented the takeover bid for TLG that had been announced at the end of October.
The shareholders of TLG Immobilien will receive 3.6 Aroundtown shares per share from a capital increase, both companies announced on Tuesday in Berlin. This corresponds to an offer price of 27.66 euros per TLG share or a premium of 3.2 percent to the last closing price. TLG would thus be valued at around 3.1 billion euros.
TLG's Executive Board and Supervisory Board have backed the offer, for which no minimum acceptance threshold is planned. In addition, the largest TLG shareholder, Ouram Holding, undertakes to tender its stake of around 28 percent.
Should the project succeed, it would see the emergence of the largest provider of office buildings in Europe. The deal will also lead to significant savings. The synergies should lead to an increase in the operating result before taxes of 110 to 139 million euros per year within the first five years after the merger.
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