3rd Apr 2008 09:15
Grainger PLC03 April 2008 3 April 2008 GRAINGER PLC ("GRAINGER") GRAINGER ANNOUNCES SUCCESSFUL TENDER OFFER FOR FRANCONORHEINMAIN AG Grainger plc, the UK's largest quoted residential property company, todayannounces that its tender offer for FranconoRheinMain AG ("FranconoRheinMain"),a residential property company listed on the Frankfurt Stock Exchange, has beensuccessful. The tender offer was made by Grainger's wholly-owned subsidiary,Grainger FRM GmbH. This follows Grainger's announcement of 31 January 2008, when it confirmed thatit had exchanged contracts to acquire a 54% shareholding in FranconoRheinMainfrom Franconofurt AG ("Franconofurt"), and the subsequent publication of thetender offer document by Grainger FRM GmbH on 3 March 2008. The tender offer was subject to a number of completion conditions, includingobtaining acceptances representing at least 70% of FranconoRheinMain shares(including shares acquired in the market outside the tender offer and the sharesto be acquired from Franconofurt). By the end of the acceptance period, on 2April 2008, Grainger FRM GmbH had received acceptances representingapproximately 85% of FranconoRheinMain shares (including shares acquired in themarket outside the tender offer and the shares to be acquired fromFranconofurt). The exact number of acceptances is currently being verified byGrainger FRM GmbH's settlement agent and is expected to be published on 7 April2008. Consequently, the 70% acceptance threshold set out in the tender offerdocument has been reached. In addition, all other completion conditions outlinedin the tender offer document have been met. Settlement of the tender offer inrespect of shares tendered up to 2 April 2008 is expected to take place on 9April 2008 and completion of the acquisition of the 54% shareholding inFranconoRheinMain from Franconofurt is expected to take place on or before 9April 2008. Grainger will pay €22.8 million for the 54% shareholding in FranconoRheinMain tobe acquired from Franconofurt and expects to pay approximately €15.3 million forthe shares tendered and acquired in the market to date, which Grainger willsatisfy from its existing resources. Under German takeover law, the remaining shareholders of FranconoRheinMain willhave the opportunity to tender their shares during an additional acceptanceperiod of two weeks, which is expected to start on 8 April 2008. Grainger expects that the supervisory board of FranconoRheinMain will bereplaced once its current members have resigned in accordance with the terms ofthe acquisition from Franconofurt. After the closing of the tender offer, Grainger and FranconoRheinMain intend toenter into a "domination agreement", which will enable Grainger to controlFranconoRheinMain. Commenting on the transaction, Rupert Dickinson, Chief Executive of Grainger,said: "FranconoRheinMain's high-quality portfolio is highly complementary to ourexisting German assets and the addition of the properties it contains providesus with an opportunity to generate strong returns through the application of ourproven asset management skills." Following the completion of the transaction, Grainger will have an interest inapproximately 6,800 units in Germany with a market value of close to €500million. 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, a member of 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:
Grainger plc