Colonial raises EUR416m from share issue

Spanish REIT Colonial has successfully closed a EUR416 million capital increase through the issue of 42,847,300 new ordinary shares at an issue price of EUR7.89 per share, representing a 2.1 per cent premium over the last closing market price.

This capital increase represents 10.92 per cent of Colonial’s share capital before the issue.
 
Thanks to the great interest that the operation raised in the market, Colonial additionally placed treasury shares for the amount of EUR78 million.
 
The issue, carried out with a charge to monetary contributions through a private accelerated placement process was subscribed to by a base of domestic and international institutional investors. The main purpose of the capital increase is to reinforce the Company’s equity in order to finance the voluntary takeover bid for 71.4 per cent of the capital of Axiare Patrimonio Socimi SA.
 
With this successful increase, together with the debt issue of €800 million carried out on 21 November, Colonial has assured the financing for the offer on Axiare, a transaction that Colonial considers at all times in terms of the maintenance of their current solvency ratios.
 
Colonial announced the acquisition of 13.3 per cent of Axaire capital on 13th November, resulting in a holding of 28.6 per cent of this company.