Flotonic's USD413 Million AFI Development Bid Becomes Unconditional

(Alliance News) - Private equity firm Flotonic Ltd on Tuesday said its USD413 million takeover offer for London-listed AFI Development PLC is now unconditional.

After receiving more acceptances from AFI shareholders, Flotonic said that as of Monday evening, it had a 93% stake in the Russia-focused property developer's A shares, and a 92% interest in its B shares.

Flotonic will now push for Cyprus-based AFI to cancel the trading of its B shares on the London Stock Exchange, this is expected to take effect on February 21.

Flotonic added that it intends to, under Cypriot law, to acquire the remaining AFI shares that it does not already own, through a compulsory acquisition.

In December, AFI said Flotonic offered to buy each share in the firm for 39.4 US cents each, valuing the company at USD413 million. This was after Flotonic made a 30 US cents bid in October, which valued AFI at USD314 million.

AFI shares were 4.0% higher at USD0.39 each in London on Tuesday morning.

Flotonic is controlled by former AFI chair Lev Leviev. The company in October said its takeover bid provided certainty for AFI investors amid rising market volatility for the Russian real estate market.

By Eric Cunha; ericcunha@alliancenews.com

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