Grainger PLC
03 March 2008
3 March 2008
GRAINGER PLC ("Grainger")
GRAINGER PUBLISHES TENDER OFFER TO THE SHAREHOLDERS OF FRANCONORHEINMAIN AG
Grainger plc, the UK's largest quoted residential property company, today
announces that its wholly-owned subsidiary, Grainger FRM GmbH, has formally
published its tender offer document relating to the tender offer for the
acquisition of the shares in FranconoRheinMain AG ("FranconoRheinMain"), a
residential property company listed on the Frankfurt Stock Exchange.
The publication of the offer document follows Grainger's announcement of 31
January 2008, when it confirmed that it had exchanged contracts on the
conditional acquisition of a 54% stake in FranconoRheinMain from Franconofurt
AG.
The tender offer takes the form of a cash offer of €1.79 per share and
represents a 19.3% premium to the price agreed with Franconofurt AG. As a
result, Grainger expects to pay a total consideration of €45.7 million for the
acquisition of FranconoRheinMain, which it will satisfy from its existing
resources.
Commenting on the launch of the tender offer, Rupert Dickinson, Chief Executive
of Grainger plc, said:
"We believe that this tender offer represents an excellent opportunity for
FranconoRheinMain's shareholders to crystallise the value from their holdings.
In return, we will secure a strong portfolio of assets, which we believe will
complement our existing holdings and provide us with an opportunity to extract
latent value through the application of our property and asset management
capabilities."
The tender offer will be conditional on receiving acceptances representing 70%
of FranconoRheinMain shares (including the shares that may be held by Grainger
and the shares to be acquired from Franconofurt). The acquisition of
Franconofurt's shares is conditional on the tender offer being successful.
Grainger already owns over 4,500 residential units in Germany with a market
value (as at 30 September 2007) of approximately €346 million. Grainger's
existing units are located in or around the major cities of Munich, Stuttgart,
Dusseldorf and Berlin. Currently Grainger's local office in Mannheim provides
specialist asset management services to these properties. Following the
completion of the acquisition of FranconoRheinMain, Grainger will have an
interest in approximately 6,800 units in Germany with a market value of close to
€500 million. The acquisition of FranconoRheinMain is expected to have a
positive effect on Grainger's net asset value and earnings per share.
For further information:
Grainger plc
Rupert Dickinson/Quinton Hill Lines
Tel: +44 (0) 20 7795 4700
Lazard & Co., Limited
William Rucker/Patrick Long
Tel: +44 (0) 20 7187 2000
Financial Dynamics
Stephanie Highett/Dido Laurimore/Jamie Robertson
Tel: +44 (0) 20 7831 3113
Notes to Editors
Grainger plc, listed on the FTSE-250 index, is the UK's largest quoted
residential property owner, with over 20,000 units under management across the
UK and in Germany. Grainger's integrated business model, which has been adapted
and improved over its long history, includes trading assets held under regulated
tenancies and investment in assured shorthold tenancies, as well as the
management of all of these properties, development of residential-led mixed-use
schemes and the management of the UK's largest market-rented residential fund.
Lazard & Co., Limited is acting for Grainger and no one else in connection with
the acquisition referred to in this announcement and will not be responsible to
any other person for providing the protections afforded to clients of Lazard &
Co., Limited or for providing advice in relation to the acquisition referred to
in this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange