By Ian Walker
Scor is increasing its stake in retail real estate Company MRM and plans to make an offer to buy the rest of it in a deal that would value the business at 113.7 million euros ($127.1 million).
The French reinsurer said late Thursday that it was buying a 15.92% share of MRM from Altarea, taking its shareholding to 72.48%.
It plans to launch a tender offer to buy the rest of MRM for around 35.4 euros a share. The estimated price is in line with MRM's net asset value at June 30 and is a 142% premium over MRM's closing share price of 14.60 euros on Thursday.
The deal follows a strategic review of Scor's options for its interest in MRM, it said.
"This transaction will enable Scor to manage its retail real estate portfolio directly and will give the company greater flexibility in its asset valuation and arbitration strategy," Scor said.
The offer is conditional upon regulatory approvals and other conditions. It would be funded from available cash funds, Scor said.
Scor has been a majority shareholder of MRM since 2013. Altarea has been MRM's second largest shareholder since 2022.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
September 27, 2024 01:11 ET (05:11 GMT)
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