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Carmila: Closing of the Acquisition of Galimmo SCA

In This Article:

  • Carmila announces the closing of the acquisition of 93% of the share capital of Galimmo SCA

  • Galimmo’s portfolio of 52 assets, mainly located in the North-East of France, was valued at 675 million euros at end-December 2023

  • The transaction is immediately accretive for Carmila (EPRA NDV +5%, recurring earnings +5% on an annualized basis and including synergies)

  • The LTV impact for Carmila is approximately 170 basis points

PARIS, July 01, 2024--(BUSINESS WIRE)--Regulatory News:

Carmila (Paris:CARM) announces the closing of the acquisition of 93% of the share capital of Galimmo SCA for a total consideration of 272 million euros, or 9.02 euros per share.

The closing took place at the same time as the closing of the acquisition by Carrefour of Cora France.

Prior to these transactions, Galimmo SCA sold to its controlling shareholder its non-strategic minority stake of 15% in its Belgian subsidiary and the loan granted to this entity for 76.5 million euros.

The 52 assets in Galimmo’s portfolio, mainly located in the North-East of France, were valued at 675 million euros at end-December 20231, with 13 shopping destinations in their catchment areas accounting for 79% of the value of the portfolio (535 million euros).

The complementary locations of Carmila and Galimmo assets offer the opportunity to integrate a high-quality portfolio in an efficient platform and to deploy Carmila’s strategy on a larger perimeter.

Including the potential acquisition of 7% of the capital from an entity managed by Primonial Reim France, announced this morning2, which, if it takes place, will follow the publication of Galimmo SCA’s first half 2024 accounts, Carmila will own 99.9% of the share capital of Galimmo SCA, corresponding to a total investment of 299 million euros, or an average acquisition price of 9.22 euros share and a discount of 38% vs. the EPRA NDV as of 31 December 20243.

The transaction will be immediately accretive for the shareholders of Carmila, both regarding recurring earnings per share (approximately 5% including synergies on an annualized basis) and EPRA NDV (approximately 5%).

Recurring synergies are estimated to be 5 million euros (on an annualized basis) and will principally come from savings in overhead costs.

The transaction, entirely paid in cash, will have a moderate impact on Carmila’s loan to value ratio, which will increase by around 170 basis points.

In compliance with market regulation, Carmila will file a simplified tender offer in the coming weeks, followed – if the entity managed by Primonial Reim France exercises its put option – by a squeeze-out, for the remaining shares in Galimmo SCA.