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 bookbuilding
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