AIG’s German arm increases offer for property firm AIRE

AIG Century GmbH & Co KGaA, part of US insurance major American International Group Inc (NYSE:AIG), said on Friday it had increased its voluntary offer to take full control of German real estate investor AIRE GmbH & Co. KGaA (FRA:ARE) to EUR18.25 (USD23.20) a share from EUR17.00.

AIG Century, which held 7.56% in AIRE before announcing plans to launch its EUR17.00 per share buyout offer on 30 April, said today it had struck agreements with more of the target’s shareholders and secured about 69.5% in AIRE.

By 30 April, the buyer had received commitments from AIRE shareholders, which together with its own stake in the target firm brought its total ownership level to around 31.8%.

The revised price is a premium of 35.69% to AIRE’s closing on 27 April, the last trading day before the offer was announced, and 87.4% above its estimated volume weighted average price for the six months to 27 April.

AIG Century said it would publish the final terms of the buyout offer in the offer document as soon as it receives clearance from the German Federal Financial Supervisory Authority.

The acceptance period will start after that approval is secured.