Spanish real estate company Neinor Homes SA agreed to acquire local peer Quabit Inmobiliaria SA in a deal that would give Neinor a consolidated land bank with the capacity to build more than 16,000 housing units.
Under the deal terms, Neinor will issue new shares to the owners of Quabit's class A shares. Following the deal, Neinor's existing shareholders will control 93% of the merged entity, with holders of Quabit's class A shares to account for the rest, considering a share exchange ratio of 1 Neinor share for every 25.9650 class A shares of Quabit. A debt restructuring, which is already in progress, will also be carried out as part of the deal.
Neinor's board will remain intact and the company will continue to be led by current CEO Borja García-Egotxeaga and Deputy CEO/CFO Jordi Argemi. Quabit CEO and Chairman Felix Abanades will become a senior adviser to Neinor.
Neinor will continue as a listed company and will incorporate joint assets for a value of about €2.00 billion.
The board-approved deal is subject to approval at the general shareholder meetings of both companies, expected to take place by late March/early April.
J.P. Morgan was lead financial adviser to Neinor, while Deutsche Bank was its joint financial adviser. Uria Menéndez and PWC collaborated with Neinor on the legal aspects.
Arcano and Cuatrecasas were financial and legal advisers, respectively, to Quabit.