Nabarro acts on recommended cash offer for Rutley European Property Limited

Media > Nabarro news > Nabarro acts on recommended cash offer for Rutley European Property Limited

17 July 2009

Nabarro LLP is acting for listed-client Rutley European Property Limited (Rutley) on its recommended cash offer, by Black Sea Global Properties Limited (BSGP), for Rutley's redeemable preference shares. BSGP's initial offer was announced in June 2009 and has now been increased and values Rutley's redeemable preference shares at £15,170,000. The total enterprise value of Rutley is approximately £449,193,000.

BSGP has set the acceptance condition for its offer at 50% as, subject to FSA approval, it intends to enable existing Rutley shareholders who wish to do so to remain invested and to retain Rutley's listing on the London Stock Exchange.

Rutley is a continental core-plus commercial real estate fund, incorporated in Guernsey, with a primary geographical focus on Central Europe. Its redeemable preference shares are admitted to trading on the London Stock Exchange's Official List and the Channel Islands Stock Exchange.

BSGP is an indirect wholly owned subsidiary of Rompetrol Holding S.A. ('RPH') and, together with RPH, has already established a strong presence in the Romanian property market. BSGP is now seeking to diversify its property interests.

Nabarro corporate partner Graham Stedman led the Nabarro team, which also included corporate associate Ben Macdonald and banking partner Duncan Hubbard and associate Dean Nash. BSGP is being advised by Berwin Leighton Paisner LLP.

Commenting on the transaction, corporate partner Graham Stedman said:

"BSGP's offer for Rutley and the intention to retain its listing, allowing existing shareholders the option to retain some or all of their existing holdings, demonstrates BSGP's belief that the European real estate market offers attractive investment opportunities after a long period of gloom. The structure of the offer, not insisting on taking a 100% ownership position and allowing existing shareholders to retain some or all of their shareholdings, is something we may see more often as the economy starts to recover as it allows existing investors to retain an interest in the future growth of the company rather than having to sell out entirely at what may be seen as a low point in the market."

For more information contact:

Charlotte Collins-White
Lansons Communications
T +44 (0)20 7566 9706
charlottet@lansons.com