Wednesday 18 October 2017

Gecina inks €2.5bn French takeover

Phil Serafino and Ross Larsen

French property giant Gecina has agreed to buy rival real estate investment trust Eurosic for about €2.5bn, adding Paris office buildings in a deal that will make it Europe's fourth-biggest property company. Eurosic shares climbed as much as 24pc.

Eurosic's six main stockholders, accounting for about 95pc of its shares, have agreed to sell for €51 a share in cash, Gecina said in a statement Wednesday. The price is 25pc above Eurosic's closing level on Tuesday. Gecina will begin a tender offer for the remaining shares and investors will have a choice of cash or stock.

The purchase will add 10pc to annual recurring net income, Gecina said. Under the agreement, Eurosic will sell its leisure, health-care and hotel assets, and properties in Spain to its biggest shareholder, Batipart, for €463m. Eurosic's portfolio is valued at €6.2bn.

(Bloomberg)

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