Price sensitive
SHAREHOLDERS ACCEPTED THE OFFER MADE BY THE CENTRAL RETAILCORPORATION (CRC) FOR THE OPERATIVE COMPANY RINASCENTE SRL
THE SALES CONTRACT WITH CRC HAS ALSO ALREADY BEEN FORMALISED
THE TRANSACTION IS VALUED AT APPROXIMATELY € 260 MLN ENTERPRISE VALUE(€ 205 MLN EQUITY VALUE), CORRESPONDING TO A MULTIPLEOF APPROXIMATELY 11 TIMES 2010 EBITDA
THE TRANSACTION ALLOWS PRELIOS (20% SHAREHOLDER) TO LEAVE A SECTOR NOLONGER HELD TO BE STRATEGIC, WITH A CAPITAL GAIN OF MORE THAN € 30 MLN
Milan, 27 May 2011 - Today saw the meeting of the Shareholders of R/U - Rinascente/Upim (ofwhich Prelios holds 20%, jointly with Investitori Associati 46%, RREEF-Deutsche Bank Group30% and Tasso 4%), the holding company with around 97% of the operative companyRinascente S.r.l. (the remaining 3% is held by the Rinascente S.r.l. management through stockoptions).
The meeting approved the sale of 100% of Rinascente to Central Retail Corporation (CRC).Following the shareholders' meeting, the related sales contract between R/U and CRC was alsoformalised.
The price of the sale is € 205 million (equity value), which expresses an enterprise value that isestimated at around € 260 million, corresponding to an implicit multiple of approximately 11times the 2010 EBITDA of Rinascente.
The price has been judged to be fair, also on the basis of the fairness opinion issued byUnicredit, advisor of R/U for the sale.
The transaction will allow Prelios to optimise its investment in a business that is no longer heldto be strategic for the company, realising a total capital gain of more than € 30 million.The improvement to the net financial position of Prelios is instead forecast to be around € 33million.
Completion of the sale will be subject to authorisation by the Antitrust authority.With registered office in Bangkok, CRC is the leading operator in distribution in Thailand, and isspecialised in the professional management of large warehouses, supermarkets, retail parksand stores. In addition to retail, the Group's business also includes property, hotels andrestaurants.
The operation advisors on behalf of Prelios, Investitori Associati and RREEF-Deutsche BankGroup were Citi, lawyers Gilberti and Pappalettera, and Professor Anelli.
THE SALES CONTRACT WITH CRC HAS ALSO ALREADY BEEN FORMALISED
THE TRANSACTION IS VALUED AT APPROXIMATELY € 260 MLN ENTERPRISE VALUE(€ 205 MLN EQUITY VALUE), CORRESPONDING TO A MULTIPLEOF APPROXIMATELY 11 TIMES 2010 EBITDA
THE TRANSACTION ALLOWS PRELIOS (20% SHAREHOLDER) TO LEAVE A SECTOR NOLONGER HELD TO BE STRATEGIC, WITH A CAPITAL GAIN OF MORE THAN € 30 MLN
Milan, 27 May 2011 - Today saw the meeting of the Shareholders of R/U - Rinascente/Upim (ofwhich Prelios holds 20%, jointly with Investitori Associati 46%, RREEF-Deutsche Bank Group30% and Tasso 4%), the holding company with around 97% of the operative companyRinascente S.r.l. (the remaining 3% is held by the Rinascente S.r.l. management through stockoptions).
The meeting approved the sale of 100% of Rinascente to Central Retail Corporation (CRC).Following the shareholders' meeting, the related sales contract between R/U and CRC was alsoformalised.
The price of the sale is € 205 million (equity value), which expresses an enterprise value that isestimated at around € 260 million, corresponding to an implicit multiple of approximately 11times the 2010 EBITDA of Rinascente.
The price has been judged to be fair, also on the basis of the fairness opinion issued byUnicredit, advisor of R/U for the sale.
The transaction will allow Prelios to optimise its investment in a business that is no longer heldto be strategic for the company, realising a total capital gain of more than € 30 million.The improvement to the net financial position of Prelios is instead forecast to be around € 33million.
Completion of the sale will be subject to authorisation by the Antitrust authority.With registered office in Bangkok, CRC is the leading operator in distribution in Thailand, and isspecialised in the professional management of large warehouses, supermarkets, retail parksand stores. In addition to retail, the Group's business also includes property, hotels andrestaurants.
The operation advisors on behalf of Prelios, Investitori Associati and RREEF-Deutsche BankGroup were Citi, lawyers Gilberti and Pappalettera, and Professor Anelli.