Takeover bid on Banimmo: Affine commits to tender its stake
Affine announces its intention to tender its whole stake in the company Banimmo
to the takeover bid launched by the Belgian insurance group Patronale Life.
Affine's 49.5% stake will thus be sold for EUR18.6m, i.e. EUR3.3 per share,
corresponding to the volume-weighted average price of the last six months.
Affine has acquired its stake in 2006 for a net amount of around EUR66.6m.
Banimmo has managed to benefit from a positive environment by generating large
profits in the years that followed, distributing over EUR45.1m in dividends in
total to Affine until 2013. The conversion of Banimmo's business model from a
property restructuring to a development company has made its business profile
more volatile, as demonstrated by the Urbanove operation, which resulted in
significant provisions and a sharp fall in its share price. For the last two
years, the new management as set by Affine has been concentrated to simplifying
the model, organising a significant debt reduction programme and relaunching
the development projects of its land bank.
For Affine, the operation means cash back available for its investments
strategy. The contribution of this disposal to the net profit should be
neutral, as the sale price of the Banimmo shares is close to the group share
net book value in Affine's balance sheet as at 31 December 2017.
Since 2008, Affine's strategy has been to refocus its activities on its
property business with a view to simplifying its economic model for investors
and to ensure a better allocation of its equity capital. The company has thus
sold its construction subsidiary ABCD (2008), its business centre subsidiary
BFI (2009) and its logistics development subsidiary Concerto Développement
(2014), and simultaneously stopped its lease finance activity (2007) and that
of its property development subsidiary Promaffine (2009).
With the disposal of Banimmo, Affine is taking an additional step towards a
property profile specialising in French commercial property and whose field of
expertise focuses on offices and, in a complementary way, on city-centre
businesses. Its investment policy is aimed at rejuvenating its assets and
attaining a balanced development between Paris Métropole (Paris and its inner
suburbs) and the major French regional cities (Bordeaux, Lille, Lyon,
Marseille, Nantes and Toulouse).
Affine is a property company specialising in commercial real estate. At the end
of 2017, it directly owned 45 buildings with a total value of EUR579, (excl.
transfer taxes) for a total surface area of 332,400 sqm. The Company owns
office properties (69%), retail properties (23%) and warehouses and industrial
premises (8%). Its assets are distributed more or less equally between Ile-de
France and other regions in France.
Affine is also the major shareholder (49.5%) of Banimmo, a Belgian property
repositioning company with operations in Belgium and France. At the end of
2017, Banimmo had total assets of 14 office and commercial buildings, with a
value of EUR208m (transfer taxes included).
Total Group assets are EUR824m (including transfer taxes).
In 2003, Affine opted for French real estate investment trust (SIIC) status.
Affine's shares are listed on Euronext Paris (Ticker: IML FP/BTTP.PA; ISIN
code: FR0000036105). It is included in the CAC Mid&Small, SIIC and IEIF
indexes. Banimmo is also listed on Euronext.
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