Corestate buys AFS – course under pressure after announced capital increase

LUXEMBURG (dpa-AFX) – The real estate investment manager Corestate Capital is buying the financing platform and securities trading bank AFS. The net purchase price, taking into account 17 million euros in cash at the time of closing of the transaction, was 113 million euros, the company announced on Thursday evening in Luxembourg. Corestate pays in detail with 8.5 million new shares and 5 million euros in cash. Under certain conditions, another 1.5 million new Corestate shares will be put on the table.

In 2021, AFS expects sales of 25 to 30 million euros and earnings before interest, taxes, depreciation and amortization of 15 to 20 million euros. In addition, Corestate expects annual revenue and cost synergies of at least 10 million euros by 2023. The company expects the transaction to be completed in the second quarter.

In an initial reaction, investors apparently focused primarily on the profit-diluting consequences of the capital increase: The price of the Corestate share fell by almost two percent on the Tradegate trading platform./he/gl