* Capital hike is worth 374 million euros, based on Tuesday
* Share placement being offered at 8.90-9.15 euros/shr
FRANKFURT, July 9 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 book building
The statement confirmed a Reuters report which had said that
the company was set to unveil a large capital measure including
a capital increase.
Gagfah shares closed up 1.2 percent at 9.35 euros ($11.95)
Based on this closing price, the capital planned to be
raised would be worth 374 million euros.
The 40 million shares were being offered at a price range of
between 8.90 euros and 9.15 euros, two sources familiar with the
share placement told Reuters.
Gagfah said of the total 40 million shares, 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.