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Aareal Bank Group Acquires Corealcredit Bank for $468M

Aareal Bank AG DR

Aareal Bank Group (OTC: <a class="ticker" href="/stock/aaaly#OTC">AAALY</a>) acquires all of the shares of Corealcredit Bank AG, specialising in commercial property financing in Germany. A corresponding sale and purchase agreement was concluded today with the previous owner, a company of US financial investor Lone Star. The purchase price amounts to €342 million, subject to contractually agreed adjustments until the closing date. According to current planning, the transaction - which is subject to the approval of the respective authorities - shall be completed during the first half of next year.
  
Corealcredit Bank has belonged to Lone Star since the end of 2005 under whose guidance the property bank undertook a successful realignment, focusing on the commercial property financing core business in Germany and managing to return to profit in 2007. With total assets of €7.6 billion (as at 30 June 2013), the bank's commercial property financing volume amounts to €3.6 billion. Within the framework of an extensive due diligence, Corealcredit Bank's' legal, tax and credit risks have been valued in a conservative manner and are comprehensively ring-fenced.
  
"By acquiring the newly realigned Corealcredit Bank, we are exploiting an attractive opportunity for inorganic growth at a favourable time", explained CEO Dr Wolf Schumacher. "With this step, we are further expanding our position as one of the leading providers of commercial property financing, and at the same time making an active contribution to sustainably safeguarding the stability of an economically important segment of the German banking sector", Schumacher said. 
  - See more at: http://www.aareal-bank.com/nc/en/media-relations/press-information/press-information/article/aareal-bank-group-acquires-commercial-property-fin/#sthash.wmuY2NQ8.dpuf

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Latest Aareal Bank AG DR Stock News | OTC:AAALY | Benzinga

Sunday, December 22, 2013

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