Acquisition will be funded by net proceeds from a rights issue of perpetual convertible capital securities in September
FIRST Sponsor is proposing to lift its stake in Dutch property developer NSI to about 22 per cent from around 17.5 per cent with a proposed share purchase amounting to 18.9 million euros (S$26.6 million), or 20.50 euros per sale share.
Listed on Euronext Amsterdam, NSI has a property portfolio of 44 office properties across Amsterdam worth about 996 million euros.
Some 56 per cent of NSI’s portfolio value was situated in Amsterdam as at Sep 30, 2024.
On Thursday (Nov 28), First Sponsor said that its indirect wholly owned subsidiary will acquire 920,839 NSI shares, in addition to the 3.5 million shares in the company that it already owns as at Nov 27.
The move presents a strategic opportunity for First Sponsor to “further meaningfully increase its equity interest in NSI in a single transaction, thereby expanding and enhancing the group’s long-term property holding business in the Dutch real estate market”, it said.
The acquisition will be funded by net proceeds from the group’s rights issue of perpetual convertible capital securities in September this year.
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Based on unaudited financial results of NSI as at end-September, its book value and net tangible asset value attributable to the sale shares were about 32.3 million euros.
On a pro forma basis, the proposed acquisition is estimated to result in an associate’s share of profit amounting to about 13.4 million euros, or around S$18.9 million, said First Sponsor.
The transaction is hence expected to be material to the group’s results for the financial year ending December 2024.
Shares of First Sponsor closed on Wednesday S$0.01 or 1 per cent down at S$1.03.
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