25th Oct 2019 18:37
(Alliance News) - Flotonic Ltd said Friday it made a USD314 million cash offer for AFI Development PLC, with AFI recommending investors "seriously consider" taking up the deal.
The Russia-focused property development company said private investment firm Flotonic offered 30 US cents for each share. Shares in AFI closed 4.9% higher at 30 US cents in London on Friday.
Flotonic - controlled by former AFI chair Lev Leviev - said the offer provided certainty for AFI investors amid rising market volatility for the Russian real estate market as well as limited trading volumes in AFI shares.
"The above factors also underpin the rationale that the company's portfolio of assets would best be undertaken by a private company having the strategic flexibility to manage the more entrepreneurial development risks and capital expenditure of the business and to react to potential operational opportunities," Flotonic said in a statement.
By Ahren Lester; [email protected]
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