Bank bidders solve tricky German M&A puzzle

Aareal Bank AG

05/04/2022 11:35

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Liam Proud
    LONDON, April 5 (Reuters Breakingviews) - Advent and
Centerbridge revived their $2 bln Aareal deal by offering a 12%
bump and letting rebel shareholders stay invested. It should
work, defying the trend of failed German takeovers. The lesson
is that debt-free deals with a flexible buyer stand the best
chance of success.
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    CONTEXT NEWS
    - Buyout groups Advent International and Centerbridge
Partners said on April 5 that shareholders with 37% of Aareal
Bank’s stock had agreed to a revised takeover offer at 33 euros
per share, which values the German lender at 2 billion euros. 
    - That compares with a rejected 29 euro per share offer from
last year.   
    - Investors Petrus Advisers, Teleios Capital, Vesa Equity
Investment and Talomon Capital have also agreed to reinvest
roughly half of their proceeds into a vehicle linked to the
buyout group’s new ownership. That will give them an indirect
20% stake in Aareal. 
    - Aareal shares rose by 3.5% to 32.50 euros as of 0824 GMT
on April 5.

 (Editing by Neil Unmack and Streisand Neto)
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