Following its takeover of a 90% stake in troubled property lender Hypo Real Estate, the German financial markets stabilisation fund Soffin plans to squeeze out US investor Christoper Flowers, it said on Monday.
Following its takeover of a 90% stake in troubled property lender Hypo Real Estate, the German financial markets stabilisation fund Soffin plans to squeeze out US investor Christoper Flowers, it said on Monday.
The state obtained the stake after subscribing to a EUR 2.95 bn capital increase and adding the shares acquired to its previously-owned HRE holding of 47.3%.
'Against this background, Soffin notified Hypo Real Estate on Monday that it will require minority shareholders to transfer their shares to Soffin, against an appropriate settlement payment,' it said in a statement. 'The company's AGM will need to decide on the squeeze-out of minority shareholders; a date has yet to be fixed,' it added.
Flowers was formerly the dominant HRE shareholder, but has been put in the minority by the German government's moves. HRE has already benefited since October from EUR 102 bn in mostly public loan guarantees. Germany decided to nationalise HRE via Soffin following concerns that the bank's collapse would trigger financial market chaos.
