3rd Mar 2008 11:48
Grainger PLC03 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, todayannounces that its wholly-owned subsidiary, Grainger FRM GmbH, has formallypublished its tender offer document relating to the tender offer for theacquisition of the shares in FranconoRheinMain AG ("FranconoRheinMain"), aresidential property company listed on the Frankfurt Stock Exchange. The publication of the offer document follows Grainger's announcement of 31January 2008, when it confirmed that it had exchanged contracts on theconditional acquisition of a 54% stake in FranconoRheinMain from FranconofurtAG. The tender offer takes the form of a cash offer of €1.79 per share andrepresents a 19.3% premium to the price agreed with Franconofurt AG. As aresult, Grainger expects to pay a total consideration of €45.7 million for theacquisition of FranconoRheinMain, which it will satisfy from its existingresources. Commenting on the launch of the tender offer, Rupert Dickinson, Chief Executiveof Grainger plc, said: "We believe that this tender offer represents an excellent opportunity forFranconoRheinMain's shareholders to crystallise the value from their holdings.In return, we will secure a strong portfolio of assets, which we believe willcomplement our existing holdings and provide us with an opportunity to extractlatent value through the application of our property and asset managementcapabilities." The tender offer will be conditional on receiving acceptances representing 70%of FranconoRheinMain shares (including the shares that may be held by Graingerand the shares to be acquired from Franconofurt). The acquisition ofFranconofurt's shares is conditional on the tender offer being successful. Grainger already owns over 4,500 residential units in Germany with a marketvalue (as at 30 September 2007) of approximately €346 million. Grainger'sexisting units are located in or around the major cities of Munich, Stuttgart,Dusseldorf and Berlin. Currently Grainger's local office in Mannheim providesspecialist asset management services to these properties. Following thecompletion of the acquisition of FranconoRheinMain, Grainger will have aninterest in approximately 6,800 units in Germany with a market value of close to€500 million. The acquisition of FranconoRheinMain is expected to have apositive effect on Grainger's net asset value and earnings per share. For further information: Grainger plcRupert Dickinson/Quinton Hill LinesTel: +44 (0) 20 7795 4700 Lazard & Co., LimitedWilliam Rucker/Patrick LongTel: +44 (0) 20 7187 2000 Financial DynamicsStephanie Highett/Dido Laurimore/Jamie RobertsonTel: +44 (0) 20 7831 3113 Notes to Editors Grainger plc, listed on the FTSE-250 index, is the UK's largest quotedresidential property owner, with over 20,000 units under management across theUK and in Germany. Grainger's integrated business model, which has been adaptedand improved over its long history, includes trading assets held under regulatedtenancies and investment in assured shorthold tenancies, as well as themanagement of all of these properties, development of residential-led mixed-useschemes 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 withthe acquisition referred to in this announcement and will not be responsible toany other person for providing the protections afforded to clients of Lazard &Co., Limited or for providing advice in relation to the acquisition referred toin this announcement. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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