Colonial shares opened 15.3 per cent higher on Wednesday after the indebted Spanish property company released details of a partial takeover bid from Investment Corporation of Dubai late on Tuesday.
Colonial's main shareholders and ICD have agreed for the Dubai fund to buy Colonial's rental business in a complicated deal that is dependent on agreement with creditor banks.
At 8.03am GMT, Colonial was up 16.3 per cent at €1.14. The stock was suspended all day on Tuesday pending a statement.
This came after Investment Corporation of Dubai (ICD) said on Tuesday it had signed a deal with shareholders in Colonial to buy the firm's rental assets, valued at over €9 billion (Dh51.38bn).
The sovereign wealth fund, which first opened Colonial's books in February, is offering €1.19 in cash per share for Colonial's rental business, but the deal is conditional on the indebted firm renegotiating financing with its creditors.
ICD's proposal involves Colonial first being split into two companies. It would then buy Colonial's profitable rental business, based on office units in Paris, Madrid and Barcelona, leaving the land and housing unit to be relisted.
Under the deal, shareholders will receive shares in the new company. Colonial's main shareholders are former Chairman Luis Portillo and the Nozaleda family, which together own 52 per cent of the company.
Portillo and the Nozaledas have been in talks with ICD for more than a month about the takeover bid.
Shares in Colonial were suspended from trade on Tuesday pending the statement about the deal, market regulator CNMV said earlier. (Reuters)
Colonial shares open higher