Link Securities | The Boards of Directors of Colonial (COL) and its 98.24% owned subsidiary, Société Foncière Lyonnaise (SFL), have agreed to initiate a detailed analysis for their potential merger, whereby COL would absorb SFL.
The potential merger would be in line with the group’s strategy of simplifying its structure, one of the key points of which was the takeover bid launched by COL for all SFL shares in August 2021. In addition, the merger would strengthen the alignment between SFL and COL, which has been its majority shareholder since 2004.
In this respect, for more than twenty years, both companies have shared a strong belief in long-term value creation through the development of urban projects in prime areas and the formation of a unique mixed-use portfolio in the Paris, Madrid and Barcelona markets. The transaction would consist of a merger by absorption of SFL into COL, whereby SFL shareholders would receive new COL shares.
The exchange ratio would be determined on the basis of a multi-criteria analysis and would be subject to an independent expert report. The signing of the common merger plan would take place during 1Q2025 and the execution of the merger would be subject to the usual conditions for this type of transaction.
