Advent and Centerbridge Prepare New $2.2bn Bid for Aareal

A buyout group seeking to take over Germany’s Aareal Bank in a $2.2bn deal said on Tuesday that it had secured commitments from shareholders to tender around 37% of stock after it raised its offer price again.

The buyout group, which includes U.S.-based Advent International and Centerbridge Partners, raised its offer price to 33 euros per share after a sweetened offer for 29 euros failed last month.

Big investors had publicly resisted tendering their shares, with one calling the offer “lousy.”

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Now Petrus Advisers, Teleios Capital, Vesa Equity Investment and Talomon Capital have agreed to accept a tender offer of 33 euros per share in cash or to sell shares to the bidder outside the tender offer, Advent and Centerbridge said in a statement on Tuesday.

The shareholders have also committed to partially reinvest into a long-dated, illiquid indirect participation of approximately 20% in the buyout group’s investment vehicle.

The raised offer values Aareal Bank at $2.19bn, Advent and Centerbridge said, adding the buyout group would make a voluntary public takeover offer to all shareholders in due course.

Source: Reuters

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