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Oaktree and CURA launch voluntary public takeover offer for Deutsche EuroShop

A consortium of private investment funds managed by Oaktree Capital Management, and CURA Vermögensverwaltung, the family office of the Otto family and parent company of ECE Group, through Hercules BidCo, are to make a voluntary public takeover offer for all no-par value shares of Deutsche EuroShop AG.

Deutsche EuroShop is a major shopping centre investor that owns a portfolio of 21 high quality centres in prime locations across Germany and selected cities in Central and Eastern Europe.

The offer will be made at a price of €21.50 per share of Deutsche EuroShop in cash. In addition, either by way of additional payment by the bidder or as dividend payment by Deutsche EuroShop, the shareholders of Deutsche EuroShop, who accept the offer, will receive the amount of the dividend to be paid for the financial year 2021 which is expected to be an amount of €1.00 per share. This results in a total offer value of €22.50 per share of Deutsche EuroShop. 

Deutsche EuroShop’s shareholders will benefit from a significant premium of 44.0 per cent over the closing price of €15.63 per share on close of business 20 May, 2022, being the last business day before the announcement of the consortium’s intention to make a voluntary public takeover offer for the business.

The controlling shareholder of CURA, Alexander Otto, and entities controlled by him including CURA, who in total hold approximately 20 per cent of Deutsche EuroShop’s share capital, have signed non-tender agreements and will not sell the shares held by them as part of the voluntary takeover offer. These shares, however, will be subject to a vote pooling agreement with the consortium resulting in the attribution of the related voting rights to Hercules BidCo following consummation of the takeover offer. CURA and Oaktree have signed a consortium agreement to work together on this transaction on an exclusive basis.

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