November 19, 2019 / 1:21 AM / a month ago

Germany's Aroundtown and TLG Immobilien agree on all share merger

(Reuters) - Shares in Germany’s TLG Immobilien (TLGG.DE) rose 1.9% in early trading after the firm said it would merge with Aroundtown SA (AT1.DE) in an all-share deal to create a commercial real estate company with 25 billion euros ($27.68 billion) in assets.

TLG shareholders will receive 3.6 Aroundtown shares, which amounts to a 27.66 euros offer price per TLG share or a 3.2% premium based on last closing prices, the companies said in a statement early on Tuesday.

Ouram Holding S.à r.l., TLG’s largest shareholder, has committed to tender its approximately 28% stake in TLG in the deal, the company said.

The combined company will have assets mainly in Berlin, Frankfurt, Dresden, Leipzig, Hamburg, and aims to achieve operational and financial annual synergies equivalent to a pre-tax increase in funds from operations of 110 million euros to 139 million euros within five years post-merger, TLG said.

Aroundtown shares fell 0.2% in early trading.

Reporting by Juby Babu in Bengaluru; Editing by Leslie Adler and Michelle Martin

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