TLG Immobilien weighs Aroundtown merger after buying 1 bln euros stake

The logo of TLG Immobilien AG commercial properties is pictured at the headquarters in Berlin, Germany, February 15, 2019. REUTERS/Fabrizio Bensch - Copyright FABRIZIO BENSCH(Reuters)

By Reuters

Published on 02/09/2019 - 00:34•Updated 25/04/2024 - 05:36

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(Reuters) - German real estate firm TLG Immobilien <TLGG.DE> said on Sunday it is evaluating a potential merger with rival Aroundtown SA <AT1.DE> after buying a nearly 10% stake in Aroundtown for about 1.02 billion euros (£925.8 million).

TLG bought a 9.99% stake in Aroundtown from its largest shareholder, Avisco Group, and said the deal would immediately add to its funds from operations per share.

TLG, which had properties worth 4.6 billion euros in its portfolio at the end of June, also entered into an option agreement to acquire up to 4.99% additional stake in Aroundtown from Avisco.

(Reporting by Aishwarya Nair in Bengaluru)

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