German Gagfah unveils cap hike, Fortress to cut stake
FRANKFURT, July 9
FRANKFURT, July 9 (Reuters) - German real estate group Gagfah on Tuesday said it would raise capital to cut debt and fund investment, while its majority owner Fortress would reduce its stake in the company.
Gagfah said a total of 40 million shares would be offered to institutional investors through an accelerated bookbuilding process.
Of the total, 10.5 million would come from Gagfah's existing treasury shares, while 9.5 million new shares would be issued.
Fortress planned to sell a further 20 million shares, which would reduce its stake to below 50 percent, on a diluted basis, if all shares are sold, Gagfah said.
Fortress currently holds 60.8 percent of Gagfah.
Deutsche Bank and Goldman Sachs were acting as Joint Global Co-Ordinators, while UniCredit is also a Joint Bookrunner on the transaction.
Gagfah shares closed up 1.2 percent at 9.35 euros on Tuesday.