Centerbridge and Advent want to take over Aareal Bank

The financial investors Centerbridge and Advent want to take over Aareal Bank. The management of the Wiesbaden real estate financier welcomed the offer worth around 1.74 billion euros. The offer is in the best interests of the company, said Aareal Bank boss Jochen Klösges, who has only recently started directing the fate of the institute. Investors are behind the bank’s strategy and will accelerate growth even further. “Contrary to the often expressed speculation, there will be no breakup,” said Klösges. Otherwise the management would “certainly not have signed the investor agreement.”

However, there was also criticism from among the shareholders. The move was well received on the stock market: The share included in the SDax index for small stocks rose at times by almost four percent. The investors’ offer of 29 euros per Aareal share corresponds to a premium of around 23 percent on the closing price on October 6 – the day before the takeover talks became known. The purchase offer provides for a minimum acceptance threshold of 70 percent. The offer documents are to be published in mid-December.

Aareal also announced that the proposal for a dividend of EUR 1.10 per share will be removed from the agenda of the extraordinary general meeting scheduled for December 9th. In order to finance the accelerated growth, the financial investors did not want to distribute any dividends in the coming years, said Klösges. They are also ready to provide additional equity should additional growth opportunities arise.

Advent and Centerbridge bring extensive experience in the areas of financial services, real estate, software and payment transactions, said Ranjan Sen, Managing Partner and Germany boss of Advent International. “We want to invest in the group in order to further develop the bank’s segments.” The transaction builds on the existing cooperation with Aareal subsidiary Aareon.