La Caixa becomes the first shareholder of Colonial with 17% of the stake
Criteria Caixa, he holding company Foundation investor The Caixahas agreed with Colonial subscribe and pay out new shares for an effective amount of 622 million euros charged to monetary and non-monetary contributions and foresees reach an approximate participation of 17% of Colonial’s share capital.
Thus, La Caixa will become the controlling shareholder displacing the sovereign fund of Qatar, which until now controlled 19%, a percentage that will decrease due to a capital increase that will dilute the stake. In addition, the agreement will also mean the entry of two directors proposed by Criteria into the company’s board of directors.
In separate statements sent to the CNMV this Thursday, the price per share resulting from the capital increase is equivalent to a pre-dividend price of 7.1 euros. Criteria will disburse non-monetary contributions through “certain residential and office properties owneddirectly or indirectly”.
Specifically, the holding company will make a monetary contribution of 350 million euros and, in addition, it will provide 8 properties coming from the portfolio of its subsidiary InmoCaixa in different Spanish cities. In this way, the total amount of the transaction is valued at 622 million euros.
Accelerate the strategy
The InmoCaixa assets that will form part of this agreement are three office buildings located in Madrid and Barcelonawith a total of more than 20,000 square meters, and five other residential buildings for rent located in Madrid, Zaragoza and Málaga, which represent more than 600 homes.
With all this, they will be issued 87,729,050 new shares -of the same class and series as those currently in circulation-, the unit face value will be 2.50 euros and the unit share premium will be 4.6 euros. Additionally, you will have the right to receive a number of additional shares of Colonial based on the payment of the dividend, the approval of which will be submitted to the ordinary general meeting, which will be held on June 12.
He holding company of La Caixa argues that this operation will accelerate the strategy to reorient InmoCaixa’s real estate portfolio, currently valued at nearly 2.7 billion euros, and of which 56% is property rental (residential and offices).
Criteria Caixa was already one of the main shareholders of Colonial in the past, controlling 12.4% of its capital in July 2010. However, in February 2014 it ceased to be part of its shareholding.
Colonial shares, on the rise
On the other hand, Colonial shares have been boosted about 4% in the stock market after the company announced the agreement reached with Criteria Caixa. The shares of this company listed on the Ibex 35 have begun to skyrocket at 4:40 p.m. this Thursday, going from trading at 6.19 euros at that time to 6.4 euros after 5:00 p.m., with an increase compared to the closing from yesterday’s session of 4.3%.
Last March, the holding company of the La Caixa Foundation re-entered its capital after emerge a participation greater than 3%taking advantage of the minimum area in which its price was 5.05 euros per share.
The operation is subject to the approval of Colonial shareholders at an upcoming extraordinary general meeting, although it already has the support of shareholders represented on its board of directors.
