Advent, Centerbridge to launch Aareal Bank takeover

Atlantic Bidco also comprises further co-investors. The bidco has signed an investment agreement with support from the management and supervisory board, according to a statement. The offer values the company at EUR 29 per share, valuing 100% of its share capital at EUR 1.74bn.

Aareal Bank's shareholders include Czech entrepreneur Daniel Kretinsky and Talomon Capital.

Perella Weinberg Partners and Freshfields Bruckhaus Deringer are advising Aareal Bank's management board, while its supervisory board is advised by Deutsche Bank and Latham & Watkins.

Advent and Centerbridge's consortium is being advised by Morgan Stanley and Bank of America. Sullivan & Cromwell, Gibson Dunn & Crutcher and Linklaters are providing legal advice.

Advent acquired a 30% stake in Aareal's property-sector enterprise resource planning (ERP) software unit Aareon in August 2020. The deal saw Advent invest EUR 260m, and valued the company at EUR 960m.

Handelsblatt reported in January 2020 that Aareal Bank could be a target for activist shareholder Petrus Advisers following its support to activist investor Teleios Capital on the sale of Aareon. Petrus subsequently raised concerns about topics including the company's corporate governance in a document published in May 2021.

Aareal Bank confirmed that it was in talks with potential majority interest buyers including Advent, Centerbridge and Towerbrook in October 2021. Unquote sister publication Mergermarket reported in October 2021 that sponsors were interested in acquiring the bank due to its value potential and pressure placed on its stock price by the pandemic. Talks had begun following an unsolicited approach by a consortium, one source told Mergermarket.

Founded in 1923 and headquartered in Wiesbaden in Germany, Aareal Bank specialises in property loans, and offers software for property businesses via its Aareon division. Jochen Klösges took over the role of CEO earlier in 2021 after his predecessor left the group in 2020.

As reported, sponsors may well see attractive opportunities to come in the banking sector in the coming months, triggered in part by the prospect of rising interest rates on their loan portfolios, particularly mortgages and business loans. Sponsors could also see consolidation opportunities in the fragmented European banking landscape.

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