Potential bid for Soci

Following the announcement with the FY 2003 results that four major shareholders representing 55.5% of the shares are looking to sell their stake in the company, various newspapers announced further developments regarding the auction process of Société Foncière Lyonnaise (SFL).

According to Le Figaro, the Blackstone Group, Westbrook Partners, Morgan Stanley, Inmobiliaria Colonial, Metrovacesa and Risanamento are among the bidders for Société Foncière Lyonnaise.

Kempen Property Research remains conservative on the chances of a full cash bid for the company. Chances remain that only the stake of Aviva (and Société Générale), which is expected to have triggered the sales process, could be sold. Aviva is expected to demand a cash bid as it would intend to refocus its investments to insurance sector.

Kempen Property Research earlier calculated a potential bid price (in case of a cash offer) of € 36.40 per share based on the FY 2003 diluted NNNAV, potential development profits and transfer taxes on a discounted basis. Arguably, accumulated total result for SFL to date, amounting to € 0.95, should be added to Kempen´s bid price calculation.

Source: Kempen Property Research

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