Cash offers for AFI Development PLC from its majority shareholder

BDO.LiveSite.Deals.DealTypeCapital markets & M&A
BDO.LiveSite.Deals.IndustryReal Estate
BDO.LiveSite.Deals.SubIndustryConstruction
BDO.LiveSite.Deals.ClientNameAFI Development PLC

BDO Mergers & Acquisitions team advised AFI Development PLC (“Company”), a Russian property group listed on the main market of the London Stock Exchange in relation to cash offers from its majority shareholder. The Company’s share price traded at a large discount to its net asset value and whilst the offers were at a premium they were still at a substantial discount to NAV.  It was therefore not possible to recommend the offers but the directors did recommend that shareholders should seriously consider them as a means of liquidity. Having sought irrevocable undertakings from a number of institutional shareholders, the offers were materially increased to a level that valued the Company at $413m. Based on this and the level of acceptances, the directors recommended the offers which have now gone unconditional.