Advent, Centerbridge to propose takeover of Germany's Aareal Bank

Shares in Aareal were indicated to rise 2.7% in Lang and Schwarz premarket trade on Tuesday. Private-equity firm Advent and private-investment management company Centerbridge will pursue the offer through its investment vehicle Atlantic BidCo GmbH.

U.S.-based companies Advent International and Centerbridge Partners floated plans on Tuesday to launch a takeover offer for Germany's Aareal Bank that would value the lender at 1.7 billion euros ($1.9 billion).

The offer price of 29 euros per Aareal share, a 35% premium over the volume-weighted average during the last three months, Aareal Bank said in a statement. "The announced offer is in the best interests of our company and its stakeholders," Aareal Bank Chief Executive Officer Jochen Kloesges said.

The bank, which specializes in real-estate lending, said last month that it was in talks over a potential acquisition of a majority stake with a group of investors. Shares in Aareal were indicated to rise 2.7% in Lang and Schwarz premarket trade on Tuesday.

Private-equity firm Advent and private investment management company Centerbridge will pursue the offer through its investment vehicle Atlantic BidCo GmbH. They plan to develop the bank's financial services, real estate, software, and payments segments, said Ranjan Sen, Advent's head in Germany.

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