(RTTNews) - Aareal Bank AG (AAALF.PK) Friday announced its agreement to sell a 30 percent minority stake in its IT subsidiary Aareon AG to financial investor Advent International.
The financial terms of the sale are based on an enterprise value for Aareon of approximately 960 million euros. This corresponds to an equity value of approximately 860 million euros, resulting in a purchase price for the 30 percent stake of around 260 million euros, payable in cash.
The purchase price will lead to a capital gain of approximately 180 million euros that will be recognised directly in Aareal Bank's consolidated equity.
The bank has agreed on a long-term partnership with Advent to significantly further strengthen the growth momentum of Aareon.
The deal requires the approval of Aareal Bank AG's Supervisory Board.
Closing of the transaction is subject to customary conditions, primarily related to anti-trust approvals, and is anticipated to occur in the fourth quarter of 2020.
In the deal, Aareal Bank is being advised by Arma Partners as Lead Financial Advisor.
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