AIG’s German arm raises offer for property investor AIRE

AIG Century GmbH & Co KGaA, part of US insurance major American International Group Inc (NYSE:AIG), said on Monday it had hiked its voluntary tender offer for German real estate investor AIRE GmbH & Co KGaA (FRA:ARE) to EUR19.75 (USD23.9) a share.

When submitting its bid on 30 April, the suitor proposed to take full control of the Frankfurt am Main-based company at a price of EUR17 per share. In May, AIG Century increased the offer to EUR18.25 a share.

The additional acceptance period on the offer will close on 30 July 2012.

The revised price is at a 46.8% premium on the company’s closing on 27 April, the last trading day before AIG Century announced its intention to launch the buyout offer, and 102.8% above its estimated volume weighted average price for the six months to 27 April.

AIG Century held 7.56% in AIRE before announcing plans to present a bid for the real estate investor.

The increase in the bidding price follows an off-market acquisition at a price of EUR19.75 a share and applies to all AIRE shares tendered to AIG Century during the offer process.

The buyer, which has so far built a stake of 93.05% in its target company, will make an additional payment of EUR1.50 to shareholders who have tendered their stock during the initial acceptance period. Shareholders who tender their stock during the extra acceptance period will be paid the increased price.

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