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Austrian real estate firm Signa ups capital by 1 bln euros
October 9, 2017 / 12:57 PM / 2 months ago

Austrian real estate firm Signa ups capital by 1 bln euros

DUESSELDORF, Oct 9 (Reuters) - Austrian real estate company Signa Prime, which sources say has been considering a bid for German department store chain Kaufhof owned by Hudson’s Bay Co , said on Monday it has raised an extra 1 billion euros ($1.17 billion) in shareholder capital.

Signa Prime said in a statement that it had increased its share capital by 1 billion euros on Oct. 3, bringing its total equity to more than 4 billion euros.

“This step enables Signa Prime to extend its market position among the leading European real estate companies,” said Signa Prime chief executive Christoph Stadlhuber.

Last month, sources told Reuters that Signa, which owns Kaufhof’s German competitor Karstadt, is working with an investment bank to line up financing for a takeover offer for Kaufhof, although they cautioned it might decide not to bid.

Signa previously tried to buy Kaufhof in 2015, when Hudson’s Bay outbid it by paying 2.42 billion euros for the German chain and its Belgian subsidiary.

Canada’s Hudson’s Bay Co has repeatedly said it is committed to its European investments, even after activist investor Jonathan Litt urged it to take drastic steps to make more money from its assets. ($1 = 0.8514 euros) (Reporting by Matthias Inverardi; Writing by Emma Thomasson; Editing by Louise Heavens)

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