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Investing.com -- Apollo Global Management (NYSE:APO) Inc. is preparing to provide approximately €750 million ($870 million) in financing for Neinor Homes SA’s potential acquisition of rival Spanish developer Aedas Homes SA, according to Bloomberg, citing sources familiar with the matter.
The New York-based private capital firm would supply the majority of funding needed for the transaction, which could create Spain’s largest property developer. In addition to Apollo’s loan, Neinor has secured irrevocable commitments from existing shareholders for about €200 million, plus plans to use funds already held by the company.
Neinor, which has a market value of €1.05 billion, slightly less than Aedas, announced on May 27 that it had entered discussions with Castlelake LP, the owner of 79% of Aedas shares. If completed, the acquisition would position Neinor as the developer with the largest land bank in Spain.
The Spanish development sector has faced challenges in recent years as companies struggled to achieve scale amid caution about investing in new construction projects.
Sources indicated that no final decision has been made regarding the potential offer, and there is no guarantee that Neinor will proceed with a formal bid for Aedas.
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