IEF Capital has withdrawn its offer for listed Dutch real estate group Vastned Retail and its EUR 2bn portfolio of international retail assets. Vastned Retail said in a statement issued on Friday that IEF Capital - a joint venture between Bouwfonds Asset Management and Inflation Exchange Fund (IEF) - had based its decision on its 'view of the market, together with weakened financing market conditions'.
IEF Capital has withdrawn its offer for listed Dutch real estate group Vastned Retail and its EUR 2bn portfolio of international retail assets. Vastned Retail said in a statement issued on Friday that IEF Capital - a joint venture between Bouwfonds Asset Management and Inflation Exchange Fund (IEF) - had based its decision on its 'view of the market, together with weakened financing market conditions'.
The move brings to an end a saga that began in November last year when IEF Capital launched an unsolicited EUR 1.15bn bid, amounting to EUR 70 per share, for the Dutch group. Vastned Retail initially rejected the offer as being substantially below the true value of its shares.
Later in November Vastned opened its books to five potential bidders. Then in March this year Vastned Retail said it had rejected a bid for the entire company because it was too low. 'The offer provides insufficient scope for the conclusion of a definitive transaction on attractive conditions,' Vastned said. Vastned had also received 'concrete' offers for its property portfolios in the Netherlands, Belgium, Spain, Portugal and Turkey, and had been approached by several parties with regards to its French assets.
On 28 April, the shareholders of Vastned Retail called on the group's management to enter into exclusive discussions with IEF Capital. The two sides signed a six-week exclusivity agreement and 'discussions were held in an open and constructive manner,' according to Vastned Retail. But IEF Capital pulled back from making a bid before a month had passed. The exclusivity agreement has now lapsed.
Vastned Retail said it will continue to operate as normal and focus on its strategic plan aimed at 'international growth and creation of shareholder value'. But the withdrawal of IEF Capital's bid was met with disappointment by traders on Friday morning. Shortly after Amsterdam Stock Exchange opened, Vastned Retail was down 11.7% at EUR 56.25. It rose by the end of the day to EUR 58.56.
IEF Capital and other unnamed buyers completed the acquisition of part of Rodamco Europe's Dutch high-street retail portfolio for EUR 741mln in mid-April.
