Foncière de Paris plans to create €3 bln Parisian office assets (FR)

The supervisory board of Foncière de Paris, following a proposal of its Executive Board, and the board of directors of Foncière des 6ème et 7ème arrondissements de Paris met and approved the principle of merging Foncière des 6ème et 7ème arrondissements de Paris into Foncière de Paris.
This transaction is envisaged with the aim of enabling these two listed companies to achieve: a merger linked to the cancellation of 17.6% of the capital of Foncière des 6ème et 7ème held by Foncière de Paris, a crystal clear strategy with a portfolio of good quality assets concentrated for almost 90% in Paris, Boulogne-Billancourt and Levallois-Perret and strengthened resources to ensure long-term development in the same caegory of assets.
The new entity, when created, will have total consolidated assets, at a market value of €3 bln. The proposed merger represents an opportunity for the teams to share their experiences and skills. A multi-criteria approach will be used to estimate merger parity value (portfolio and market criteria). Subject to the work of the merger auditors, who will be appointed, parity could be between 0.15 and 0.20 share Foncière de Paris for one share Foncière des 6ème et 7ème, this being calculated with the following criteria: NAV per share, share price, dividend per share.
The shareholders merging of the two companies will meet in May 2015 in order to vote on this operation and on the draft merger agreement after having viewed the report of the merger auditors. On completion of this transaction, the share capital of the new entity will remain quite substantially held by the insurance companies today already shareholder of the company: Covéa, Allianz, Assurances du Crédit Mutuel, Generali, Le Conservateur, Zurich. No shareholder envisages reaching the 30% threshold in capital or voting rights.
Source: Foncière de Paris