Spain's Colonial to buy French unit SFL in 800 million euro deal

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MADRID (Reuters) -Spain’s Inmobiliaria Colonial on Thursday said it would submit a voluntary takeover offer to acquire between 95% and 100% of its French subsidiary Societe Fonciere Lyonnaise (SFL) in a deal valued at around 800 million euros ($970 million).

Colonial said the transaction would represent an investment of up to 1 billion euros factoring in some debt and increase the REIT’s exposure in Paris to more than 60% of its total portfolio.

The company said its offer would be open to all minority shareholders of SFL and was in any case aiming to reach between 95% and 100% of the French company.

Predica, the Credit Agricole (PA:) insurance subsidiary, would see its stake in SFL fall to 4% from its previous holding of 13% once the deal is completed.

“We will present the offer to the market regulator in Paris on Friday,” CEO Pere Vinolas told reporters. “But this investment has the blessing of all the necessary entities.”

The Spanish real estate firm, specialised in office space, currently has an 82% stake in SFL.

It will compensate all willing minority shareholders of SFL with 46.66 euros and five new Colonial shares for every SFL share they buy.

($1 = 0.8249 euros)

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