Colonial shareholders ask Dubai fund to modify offer
29 Feb 2008
Mumbai: Grupo Portival SL and Zent Inversiones SL, the two major shareholders of Inmobiliaria Colonial SA, said they are looking for "some clarification and certain changes" on Investment Corporation of Dubai's buy-out offer.
Investment Corporation of Dubai has proposed to acquire 50.1 per cent of Colonial at 1.85 euro per share.
Grupo Portival is the investment vehicle of core shareholder Luis Portillo while Zent is controlled by Nozar SA. Together the two hold about 52 per cent of Colonial shares.
The two have 48 hours from the time the Dubai fund's offer made its offer yesterday to accept or reject it.
Zent and Grupo Portival said they would make a decision on the offer 'as soon as possible'.
State-owned Investment Corporation of Dubai bid as much as €3.6 billion ($5.4 billion) for Inmobiliaria Colonial SA, a listed Spanish real estate developer that has lost more than half its value in the past year.
If concluded, the deal would be the biggest single investment in Spain by a sovereign wealth fund.
A deal would also give the Gulf fund a portfolio of shopping malls and office blocks in Madrid, Barcelona and Paris that are estimated to be worth about €12 billion, as well as €8.9 billion of debt already on Colonial's books.