Colonial launches $1.70b bid for Axiare
MADRID: Spanish office buildings owner Inmobiliaria Colonial said it had launched a takeover bid for Axiare Patrimonio, valuing the rival company at 1.46 billion euros ($1.70 billion).
Colonial, which already owns nearly 29 per cent of Axiare after buying an additional 13.3 per cent from its own former shareholders, said it was offering 18.50 euros in cash for the remaining shares, a 13 per cent premium to Friday’s closing price.
Axiare’s share price jumped as much as 15.5 per cent to a record high of 18.89 euros, before slipping back to 18.48 euros, when shares in Colonial were down 2 per cent at 7.54 euros.
Analysts said the deal could spark further deals in the sector, with shares in Lar Espana up 1.6 per cent.
“With this transaction, Colonial consolidates its position as the leading European platform for the prime office market in Paris, Madrid and Barcelona,” Colonial said in a statement.
Colonial, which recently announced plans to move its headquarters to Madrid from Barcelona, where Catalonia’s local government is in turmoil over its attempt to split from Spain, said the transaction was fully financed through a combination of equity, bonds and the disposal of non-core assets.
“We believe that Colonial is paying a fair price for the company,” a Banco Sabadell analyst said in a note.
Axiare did not issue a response on the move and could not immediately be reached for comment.
Colonial had not discussed the structuring of the deal with Axiare’s management, Colonial’s chief executive, Pere Vinolas Serra, said on a conference call.