Gagfah Board Recommends Stockholders To Accept Purchase By Deutsche Annington

(RTTNews) - The board of real estate firm Gagfah SA (GGFHF.PK) on Tuesday advised its shareholders to accept the 3.9 billion euros or about $4.86 billion voluntary public takeover offer from Deutsche Annington Immobilien SE. The deal was initially announced on December 1.

Gagfah's board concludes that the bidder's offer of 18.00 euros per Gagfah share represents a fair compensation. This assessment is supported by fairness opinions prepared by Bank of America Merrill Lynch, Deutsche Bank and Rothschild.

Deutsche Annington will offer 122.52 euros in cash and 5 new Deutsche Annington shares for 14 Gagfah shares at a combined value of 18.00 euros per Gagfa share, based on Deutsche Annington's closing price as of November 28.

The execution of the offer will have no direct impact on the employment contracts and conditions of employees of the Gagfah Group.

The deal is expected to result in significant economies of scale and the combination is expected to create a company with a portfolio comprising around 350,000 residential units.

With a total portfolio value of around 21 billion euros, it will be the second largest listed real estate company in continental Europe.