Last checked at 2 Jun 2014 07:00
02 June 2014
SAVILLS COMPLETES STUDLEY ACQUISITION
International real estate advisor Savills today announces the completion, effective 30 May 2014, of its acquisition of 100% of Studley, Inc. the leading US independent commercial real estate services firm specialising in tenant representation.
Savills also announces that on 29 May 2014, Studley Inc. agreed to sell its 49.06% interest in AOS Partners Holdings SAS ("AOS Studley"), the French EMEA-focussed project management business, to the founding shareholder of AOS Studley. This follows the announcement on 1 May that the AOS Studley interest would be held as an asset for sale. The sale, which is subject to customary conditions, is due to complete this summer.
As announced on 1 May 2014, the consideration payable by Savills for Studley Inc. is up to US$260 million (up to US$246 million net of the proceeds, which will be retained by Savills, from the agreed sale of Studley Inc's 49.06% interest in AOS Studley) as follows:
· initial consideration of US$130 million. Approximately half of the initial consideration is in the form of 5.8 million new ordinary Savills shares (with a value of US$62.2 million, at the volume weighted average price of 635p per share over the 20 trading days before the 1 May 2014 announcement) which will be issued to vendor shareholders in three equal annual instalments commencing on the first anniversary of completion. The balance of the initial consideration, of US$67.8 million was paid in cash on completion; and
· promissory notes with a face value of up to US$130 million, with US$60 million of such notes payable on the first anniversary of completion and up to US$70 million on the third anniversary of completion. The majority of the noteholders will be vendor shareholders who will be paid the face value of the third anniversary notes only if they remain actively engaged in the business at the payment date.
The newly combined US business will be re-branded Savills Studley
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For further information please contact:
Savills Tel: +44 20 7409 8934
Jeremy Helsby, Group Chief Executive
Simon Shaw, Group Chief Financial Officer
Tulchan Communications Tel: +44 20 7353 4200
Peter Hewer
.