Gagfah, a German real estate group, announced last Tuesday that it will be offering 40 million shares to raise capital. The purposes of the fundraising were for debt payment and fund investment.
The company will use an accelerated book building process to dispose of the shares, which will be offered to institutional investors. The shares will be offered between Eur8.90 and Eur9.15 per share, according to two sources familiar with the matter.
In addition, 10.5 million shares will be coming from the existing shares in the company's treasury. The remainder of the 40 million shares, 9.5 million shares, will be in the form of new shares.
The expected capital to be raised would amount to Eur374 million. This is based on Tuesday's closing price of Eur9.5 per share.
Meanwhile, the majority shareholder in the company, Fortress, will be decreasing its stake in Gagfah. Fortress will be selling its 20 million shares in the real estate group. This will reduce its stake in the company from 60.8% to less than 50%, if all shares will be sold and on a diluted basis.
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