French, Dutch property groups to forge EU leader

10th April 2007, Comments 0 comments

PARIS, April 10, 2007 (AFP) - French property group Unibail announced Tuesday it had agreed to buy Dutch rival Rodamco Europe in a bid to create what they said would be the biggest pan-European commercial real estate operation.

PARIS, April 10, 2007 (AFP) - French property group Unibail announced Tuesday it had agreed to buy Dutch rival Rodamco Europe in a bid to create what they said would be the biggest pan-European commercial real estate operation.

Unibail said it had offered 0.53 of its own common shares for each Rodamco common share, a 15 percent premium over Rodamco Europe's closing share price on April 5, which valued the group at 11.2 billion euros (15.04 billion dollars).

"Rodamco Europe and Unibail Holding announce they intend to combine both companies to create the leading pan-European commercial property company," the companies said in a joint statement.

A merger of the companies would create a property giant with assets worth 21.7 billion euros and annual net rental income of 974 million euros based on 2006 figures.

The combination would lead to the creation of "the largest pan-European portfolio of class-A shopping centres with over 700 million visits per year," the groups said.

Unibail proposed an alternative takeover offer to Rodamco shareholders, covering a maximum 20 percent of the offer, involving redeemable bonds in exchange for Rodamco common shares.

The companies said they would have a combined market capitalisation of about 21 billion euros, with their registered office in Paris and international operations headquartered in the Netherlands.

The new combination is expected to introduce a new company name at a later stage.

Unibail chief executive officer Guillaume Poitrinal will become management board chairman and CEO of the combined group.


Copyright AFP

Subject: French news

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