Shares in Germany’s TLG Immobilien rose 1.9% in early trading on 19 November after the firm said it would merge with Aroundtown in an all-share deal to create a commercial real estate company with €25bn (US$27.7bn) in assets.
TLG shareholders will receive 3.6 Aroundtown shares, which amounts to a €27.66 offer price per TLG share or a 3.2% premium based on last closing prices.
Ouram Holding, TLG’s largest shareholder, has committed to tender its 28% stake in TLG in the deal.
The combined company will have assets mainly in Berlin, Frankfurt, Dresden, Leipzig, Hamburg, and aims to achieve operational and financial annual synergies equivalent to a pre-tax increase in funds from operations of €110m to €139m within five years post-merger.
Aroundtown shares fell 0.2% in early trading.