New step in the merger process between colonial and its subsidiary Gala Société Foncière Lyonnaise (SFL) of which has 98.24% of the capital. The Board of Directors of Colonial has agreed to set the exchange equation in 13 Colonial actions for each SFL action.
In addition, has determined an exit price of 77.5 euros per share of SFL, that would be adjusted in the amount of the SFL dividend that will be submitted to approval prior to the merger, for those SFL shareholders who decide to vote against the merger in the General Board of Shareholders of the Gala firm and exercise the corresponding mechanism of alienation of actions in accordance with French law.
This has been communicated to the CNMV the SOCIMI specialized in the premium office market, which has had Morgan Stanley & Co. International as a financial advisor for its board of directors.
As the Spanish socimi explained at the time, the potential fusion would be aligned with the group of simplifying its structure, in which one of the key points was the public offer of acquisition launched by colonial on all SFL shares in August 2021.
For its part, The SFL Board of Directors, acting on the recommendation of an independent counselors committee, He has also agreed the same exchange equation and departure price. In this case, the Committee of Independent Directors has had the financial advice of Rothschild & CO, which has issued a Fairness Opinion on the financial terms of the merger.
“The above conditions are subject to the approval of the Common Fusion Project, which will include the exchange equation and the departure price, by the Colonial and SFL Administration Councils, and to the favorable report of the independent expert Agnès Piniot (Ledouble), appointed by the President of the Paris Trade Court on November 12, 2024 as an unique independent expert, “explains the company in its statement.
The execution of the proposed fusion is subject to the approval of the shareholders of Colonial and SFL In the General Boards that will foreseeably be held at the end of April 2025 and the corporate formalities necessary for this type of operation.
Likewise, the execution of the merger will also be subject to the authoritated financial marches confirms that Colonial is not obliged to present an offer of negotiation exclusion on SFL actions in accordance with French legislation.
French business weight
The gala business is in fact a very relevant pillar in colonial accounts. Specifically, at the end of June 2024, Revenue revenues from Paris office buildings reached 127 million euroswhich means a figure greater than the sum of the income generated in Madrid and Barcelona, where income by volume of 42 and 23 million, respectively.
Likewise, the Parisian market registered the greatest increase, with 14%, compared to the fall of 16% of the Spanish capital and the 5% increase in the city.
The hiring was also superior in Paris, since of the 65,972 m2 signed 58% corresponds to the Madrid and Barcelona market and the Gala capital monopolizes 42% to the Paris market. This led to an occupation of 100%of the French properties, which at the end of June had a value of 7,406 million euros.
The SOCIMI also highlighted at the time that in Paris two operations with income were recorded above 1,000 euros per m2 per year. The maximum income signed in Spain is located at 40 euros/m2/month for Madrid and 28 eurosm2/month for Barcelona.
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