Romania-based investor Black Sea Global Properties (BSGP) has raised its offer to buy Deutsche Land, the London-listed German property investor, to 13 pence in cash per share.
Romania-based investor Black Sea Global Properties (BSGP) has raised its offer to buy Deutsche Land, the London-listed German property investor, to 13 pence in cash per share.
The price values Deutsche Land's existing share capital at £43.2 mln (EUR 468 mln), valuing the total company at £425.2 mln including net debt of £382 mln.
The new bid represents a premium of over 18% to the closing price of 11 pence per Deutsche Land Share on 8 September 2009, the last dealing day prior to the commencement of the offer period, and a premium of over 8% to the original offer price of 12 pence per Deutsche Land share. BSGP said the new offer in cash 'is final and will not be increased'. BSGP currently owns 32% of Deutsche Land.
The directors of Deutsche Land said they 'consider the terms of the offer to be fair and reasonable'. The independent directors intend to unanimously recommend that Deutsche Land shareholders accept the offer as they intend to do with their combined 6% stake in Deutsche Land.
'The increased offer from BSGP represents in the view of the directors fair value for Deutsche Land Shares and offers shareholders certainty and liquidity in a time when the outlook for real estate markets in Germany is uncertain,' said Stephen Dickinson, chairman of Deutsche Land.
Deutsche Land owns a portfolio consisting of 54 properties, including the Main Airport Center in Frankfurt. The portfolio was valued at EUR 513 mln at end-June 2009, a 6.3% decline compared to its value of EUR 548 mln at year-end 2008.
