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22 May 2024

ICD reaches deal with leading Colonial shareholders

By Staff Writer


The Investment Corporation of Dubai (ICD) has agreed with leading shareholders of Spanish property firm Colonial on the broad terms of a 3 billion euro ($4.56 billion; Dh16.74 billion) takeover, Dow Jones reported late on Tuesday.

The development came over a month after the UAE-based investment company first announced its plan to buy major stakes in the Spanish property firm. Both parties have also missed a negotiation deadline set on Monday as shareholders demanded clarification from ICD regarding the takeover bid.

Creditors, likewise, were eagerly anticipating a favourable outcome from the deal since a failed negotiation would leave them with the burden of managing an indebted Colonial. Last year, a group of investors composed of Goldman Sachs, Royal Bank of Scotland, Eurohypo and Calyon pooled a 7.2 billion euros (Dh40.10 billion) fund to salvage the Spanish company. International media said creditors have not so far received a return on their investments.

Reuters also said that shares in Colonial rose after a trading suspension was lifted, adding 4.3 per cent to 1.21 euros at 0808 GMT.
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