GE Real Estate has announced its support of the intended merger between Foncière des Régions and Bail Investissement Foncière, which was approved by the Supervisory Board and the Board of Directors of these companies on May 31st 2006.
A Bail Investissement shareholder since 1998 through ISM, a 100% GE subsidiary, GE Real Estate participated with Foncière des Régions on its takeover bid on Bail Investissement Foncière in December 2004. Since this date, Foncière des Régions and ISM have respectively held 37% and 26% of the capital and voting rights of Bail Investissement Foncière, (63% combined).
As a result of this merger, ISM and Batipart (who currently holds approximately 38% of capital and voting rights of Foncière des Régions) will hold respectively 16% and 20% of capital and voting rights of this new group, Foncière des Régions.
A Shareholders Agreement between Batipart and ISM will be effective following the merger, as a result of which the companies will work together for all further transactions. This agreement serves as a clarification for governance rules and will confer to Batipart a first offer right in the case of a cession or a handover.
François Trausch, President of GE Real Estate France announced: We have participated in Bail Investissement Foncières development since 1998. Through this merger with Foncière des Régions, with whom we have been in partnership since 2004, GE Real Estate is contributing to the creation of a significant real estate company which will able to create and meet investors expectations for growth.
Source: Financial Dynamics