Reuters reported that private equity investor, Oaktree Capital, is in discussion to merge the real estate unit of its German office with its competitor Prime Office. According to Prime Office's statement last Wednesday, it also added that with the merger, the new company would be listed publicly with an estimated total assets of EUR2.3 billion according to Prime Office. The two companies share the goal of attaining an agreement before the European summer season.
Oaktree owns 8.4% shares in Prime Office and after the merger Oaktree becomes the majority shareholder of the company. The agreement allows Oaktree to draw in new financiers for the merged company with the option to sell its own shares later.
A statement released said, "Should the talks progress positively, the companies plan to take the necessary steps that are required for a merger including the determination of the merger exchange ratio and the appointment of the merger auditor."
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