The Norwegian investment fund, Norges Bank Investment Management, one of the largest funds in the world, is among the new shareholders of Trade Estate REIC, following the private placement of a 16% stake in the company by the Fourlis group.
So far, it has placed funds in more than 8,700 companies in approximately 70 countries around the world and in Greece. Among others, it has acquired stakes in Alpha Bank, Eurobank and PPC.
Through the same process, Latsco Family Office increased their stake in REIC, which was able to improve the average acquisition price of the share (during the listing on the Stock Exchange, they purchased the share for 1.92 euros) as the offering price was set at 1.5 euros per share.
This is a significant discount of around 40% compared to the Net Asset Value (NAV) of Trade Estates.
The total value of the transaction (34 blocks of shares totaling 19.28 million shares) was 29 million euros, while smaller percentages have been purchased by other private investors and bank mutual funds.
According to Fourlis, the completion of the private placement of Trade Estates shares marks an important milestone in the strategic development of the group. It added that the investment interest was strong despite the difficult stock market environment.
29 million euros
It is noted that from the very beginning, when Trade Estates entered the Stock Exchange, Vasilis Fourlis, Executive Chairman of Fourlis Holdings, had made known his intention to further reduce the group’s participation in REIC.
With the sale of 16%, the Fourlis group’s share was reduced below 50%, specifically to 47.3%. This development leads to the deconsolidation of Trade Estates, while at the same time the group maintains a significant minority stake in the company.
Through this transaction, the Fourlis group also secures 29 million euros, strengthening its financial position and reducing its net debt, which after the sale currently amounts to 60 million euros.
