German $2 bln buyout flags bank investor myopia

Aareal Bank AG

23/11/2021 10:47

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Liam Proud
    LONDON, Nov 23 (Reuters Breakingviews) - Advent and
Centerbridge agreed to buy Aareal Bank, a real-estate lender
that also owns an IT business. They could churn out a good
return with a breakup or just by investing in the business
rather than paying dividends. Payout-hungry shareholders in
other banks should take note. 
    Full view will be published shortly.
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    CONTEXT NEWS
    - Aareal Bank said on Nov. 23 it would support an offer from
a private equity consortium comprising Advent International and
Centerbridge Partners that values the German lender at 1.7
billion euros.
    - Advent and Centerbridge are offering 29 euros per share
for Aareal, a 35% premium to the volume weighted average price
in the three months to Oct. 7, when news of the offer first
broke.
    - The offer is conditional on a minimum acceptance level of
70%. Aareal shares were up 3.9% at 29.2 euros by 1020 GMT on
Nov. 23.
    

 (Editing by Neil Unmack and Karen Kwok)
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