Terra Firma’s Deutsche Annington holds off on IPO

Ellie Pullen
03 July 2013

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German housing company Deutsche Annington Immobilien (DAI), which is backed by Terra Firma Capital Partners, has reportedly postponed its €1.1bn IPO on the Frankfurt Stock Exchange due to low investor demand.

According to reports, a company statement released yesterday evening stated that, due to insufficient demand for shares at the offered price of €18-21 per unit, DAI has put off the flotation until market conditions improve. A new date has not yet been set.

Unquote" previously reported that DAI was planning on using the proceeds from the offering to refinance maturing debt with new loans, as well as to extend existing maturities.

Reuters stated that majority backer Terra Firma had reportedly planned on selling 27.4 million shares in the offering, with a greenshoe of an additional 7.4 million shares. DAI was reportedly planning on offering 22.2 million shares. Overall, the offering was to comprise 25% of DAI's shareholding, including the new shares offered by DAI and secondary shares currently held by Terra Firma.

Terra Firma acquired DAI in February 2001, in a deal worth approximately €2bn. KfW and Landesbank Hessen-Thüringen Girozentrale provided an €833m debt package for the acquisition. In July last year, Terra Firma agreed to inject an additional €500m into the company as part of a restructuring plan for DAI's €4.3bn debt burden.