Inmobiliaria Colonial SA (COL), Spain’s largest publicly traded developer, received a non-binding bid for its stake in Societe Fonciere Lyonnaise SA (FLY), Chief Executive Officer Pere Vinolas said. The French property company climbed the most in more than nine months.
“The company has had a non-binding offer for its SFL stake that is subject to conditions, but I reiterate the offer is not binding,” Vinolas said at a shareholder meeting today. In the agenda for the meeting, Barcelona-based Colonial said it hadn’t received any binding offers for the shareholding.
Colonial owns about 54 percent of SFL, which gained as much as 3.5 percent in Paris, the most since April 2013. The shares traded at 39 euros at 3:30 p.m., raising the company’s market value to 1.8 billion euros ($2.4 billion).
At today’s meeting, Colonial shareholders voted in favor of a proposal by a group of investors led by Grupo Villar Mir to invest as much as 500 million euros in the Spanish developer through a capital increase. The offer is conditional on, among other things, Colonial maintaining a controlling stake in SFL.
A competing offer from a fund owned by Brookfield Asset Management Inc. (BAM:US) to restructure Colonial’s 1.8 billion-euro syndicated loan, of which Toronto-based Brookfield holds 46 percent, wasn’t put to shareholders.
Brookfield’s proposal included selling Colonial’s stake in Paris-based SFL and participating in a capital increase that could give it a controlling stake in the company, according to a filing this month.
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