Colonial strengthens its position within SFL

Colonial and Qatar Investmet Authority (QIA) have signed an agreement in which Colonials controlling stake will increase up to a 81 percent of its French subsidiary SFL.

The transaction has been carried out through the contribution of 22 percent of SFL shares held by QIA to Colonial. This transaction implies a non-cash capital increase in Colonial, fully underwritten by QIA as well as a cash payment made by Colonial.

The transaction has the approval of the board of directors from Colonial, which, in the following days, will call for a shareholder meeting in order to approve the terms of the agreement and to propose the capital increase.

With this transaction, Colonial takes a significant step forward in the simplification of the group shareholder structure, focused on prime offices with an asset value in excess of €11 billion ($13 billion).

The total investment volume amounts to €718 million ($832 million). Around a quarter of that amount corresponds to cash payment by Colonial combined with the swap of treasury shares enhancing the economics of the deal.

The major part of the transaction is structured through a non-cash capital increase of Colonial fully underwritten by QIA.