Sonae SGPS has signed an agreement with Grosvenor for the sale of 17.04% of the share capital of Sonae Sierra to Grosvenor. The two companies now each hold 50% of Sonae Sierra's capital. Grosvenor's interest is held through its subsidiary GFEPI, in which GIC and Wellcome Trust are minority investors.
The transaction price is 218 million. The share capital of Sonae Sierra, a leading investor, developer, and manager of shopping and leisure centers, was previously split between Sonae SGPS (67.04%) and Grosvenor (32.96%).
This deal will be submitted to the Portuguese Competition Authority and will be subject to its final clearance.
The deal announced last Thursday is a confirmation of the excellent relationship between the two shareholders and their confidence in the business strategy being followed by Sonae Sierra, its board and staff. As such the deal between the two shareholders of Sonae Sierra means that there is no change in the strategy and business organisation of the Company, which will continue to have a stable and solid shareholder base.
An important result of this agreement is that Sonae Sierra will be both shareholders' platform for the future development, investment and management of shopping and leisure centers in Continental Europe.
Speaking about the agreement signed with Grosvenor, the Chairman of Sonae SGPS, Belmiro de Azevedo, expressed: "Our pride and satisfaction in the fact that a partner with the weight and prestige of Grosvenor has strengthened its backing of a partnership that possesses all the qualities to remain an ongoing success story."
Neil Jones, Chief Executive of Grosvenor in Continental Europe, said: "Sonae Sierra leads by example in areas such as innovation, management approach and governance. We are delighted to deepen our relationship with Sonae SGPS in providing the right ownership conditions to enable Sonae Sierra to focus on its strategy and continue to thrive."
Álvaro Portela, CEO of Sonae Sierra, stated that he feels "very happy to see that both shareholders of Sonae Sierra are satisfied with the performance of the company and that they both continue to believe in the business strategy that the Company has been following. This transaction reinforces Sonae Sierra shareholder stability and motivates us all to do even more!"
Source: Sonae Sierra