Berlin (ots) - - The Federal Republic of Germany, acting through the Financial Market Stabilization Fund (SoFFin), is intending to submit a voluntary public takeover offer to the shareholders of Hypo Real Estate AG (HRE). - The offer price of EUR 1.39 per HRE share represents a premium of approximately 10% to the statutory minimum offer price of EUR 1.26. - This provides an opportunity for HRE shareholders to sell their investment at an attractive price. - SoFFin is aiming to acquire 100% of the outstanding shares - though no minimum acceptance level. - This takeover offer is an important step towards stabilising the German financial market.
The Federal Republic of Germany, acting through the Financial Market Stabilization Fund (SoFFin), is intending to submit to the shareholders of Hypo Real Estate AG (HRE) a cash offer for the acquisition of all outstanding shares in HRE (ISIN DE0008027707) against payment of an offer price of EUR 1.39 per HRE share. This corresponds to a transaction volume of approximately EUR 290 million for all outstanding HRE shares not yet owned by SoFFin. The offer price of EUR 1.39 per share represents a premium of approximately 10% compared to the statutory minimum offer price of EUR 1.26. This statutory minimum price is provided for in the Supplementary Financial Market Stabilization Act, which came into effect today. The statutory minimum price results from the average domestic market price in the period from 1st to 15th February 2009. The offer provides an opportunity for HRE shareholders to sell their investment at an attractive price.
In September 2008, HRE ran into serious financial difficulties, threatening the existence of the Bank. If HRE were to become insolvent, this would have substantial, barely quantifiable consequences for the national and international financial markets. This in turn would have a considerable impact on the entire national economy. Against this background, SoFFin is intending to stabilise HRE through recapitalisation measures and the granting of guarantees. SoFFin will closely follow the necessary measures taken by HRE's management to restructure HRE. To this end it aims to acquire full control over HRE, as this is necessary to ensure recapitalisation and restructuring measures can be implemented swiftly and on a legally secure and economically viable basis.
"With its public offer and the chosen offer premium SoFFin underlines that it wishes to stabilise the financial market using a market-oriented approach if possible and by adhering to existing market practice", explains Prof. Dr. Hannes Rehm, Chairman of the SoFFin Management Committee.
SoFFin is intending to complete the offer very swiftly. The details will be included in the offer document to be published within the next few days after approval by BaFin. All HRE shareholders wishing to accept the offer should contact their custodian bank as early as possible.
Financial Market Stabilization Fund (SoFFin) The Financial Market Stabilization Fund is managed by the Financial Market Stabilization Agency. It has been given the name "Financial Market Stabilization Agency " as per its objective and because of the limited period of time it will be in operation. The fund was created on 17 October 2008 under the German Financial Market Stabilization Act.
Notes to editors: Please direct any questions relating to SoFFin's voluntary public takeover offer to the persons below. Please refer to http://www.SoFFin.de for any related materials.
Originaltext: SoFFin Digitale Pressemappe: http://www.presseportal.de/pm/74856 Pressemappe via RSS : http://www.presseportal.de/rss/pm_74856.rss2
Pressekontakt: For further information, please contact:
Kirsten Bradtmöller Financial Market Stabilization Fund (SoFFin) - Financial Market Stabilization Agency - Press Spokesperson Telephone: + 49 (0) 69 23 88 30 09 E-mail: kirsten.bradtmoeller@soffin.de Christine Graeff Brunswick Group GmbH, Frankfurt Partner Telephone: +49 (0) 69 24 00 55 12 E-mail: cgraeff@brunswickgroup.com
The Federal Republic of Germany, acting through the Financial Market Stabilization Fund (SoFFin), is intending to submit to the shareholders of Hypo Real Estate AG (HRE) a cash offer for the acquisition of all outstanding shares in HRE (ISIN DE0008027707) against payment of an offer price of EUR 1.39 per HRE share. This corresponds to a transaction volume of approximately EUR 290 million for all outstanding HRE shares not yet owned by SoFFin. The offer price of EUR 1.39 per share represents a premium of approximately 10% compared to the statutory minimum offer price of EUR 1.26. This statutory minimum price is provided for in the Supplementary Financial Market Stabilization Act, which came into effect today. The statutory minimum price results from the average domestic market price in the period from 1st to 15th February 2009. The offer provides an opportunity for HRE shareholders to sell their investment at an attractive price.
In September 2008, HRE ran into serious financial difficulties, threatening the existence of the Bank. If HRE were to become insolvent, this would have substantial, barely quantifiable consequences for the national and international financial markets. This in turn would have a considerable impact on the entire national economy. Against this background, SoFFin is intending to stabilise HRE through recapitalisation measures and the granting of guarantees. SoFFin will closely follow the necessary measures taken by HRE's management to restructure HRE. To this end it aims to acquire full control over HRE, as this is necessary to ensure recapitalisation and restructuring measures can be implemented swiftly and on a legally secure and economically viable basis.
"With its public offer and the chosen offer premium SoFFin underlines that it wishes to stabilise the financial market using a market-oriented approach if possible and by adhering to existing market practice", explains Prof. Dr. Hannes Rehm, Chairman of the SoFFin Management Committee.
SoFFin is intending to complete the offer very swiftly. The details will be included in the offer document to be published within the next few days after approval by BaFin. All HRE shareholders wishing to accept the offer should contact their custodian bank as early as possible.
Financial Market Stabilization Fund (SoFFin) The Financial Market Stabilization Fund is managed by the Financial Market Stabilization Agency. It has been given the name "Financial Market Stabilization Agency " as per its objective and because of the limited period of time it will be in operation. The fund was created on 17 October 2008 under the German Financial Market Stabilization Act.
Notes to editors: Please direct any questions relating to SoFFin's voluntary public takeover offer to the persons below. Please refer to http://www.SoFFin.de for any related materials.
Originaltext: SoFFin Digitale Pressemappe: http://www.presseportal.de/pm/74856 Pressemappe via RSS : http://www.presseportal.de/rss/pm_74856.rss2
Pressekontakt: For further information, please contact:
Kirsten Bradtmöller Financial Market Stabilization Fund (SoFFin) - Financial Market Stabilization Agency - Press Spokesperson Telephone: + 49 (0) 69 23 88 30 09 E-mail: kirsten.bradtmoeller@soffin.de Christine Graeff Brunswick Group GmbH, Frankfurt Partner Telephone: +49 (0) 69 24 00 55 12 E-mail: cgraeff@brunswickgroup.com