Amundi and Crédit Agricole Immobilier are set to combine their real estate management activities by merging their specialised management companies Amundi Immobilier and CA Immobilier Investors (CAII).
The transaction aims to “create a French player on a European scale”, Amundi targeting the European top five of property managers as well as the strengthening of its business with large institutional investors in France and abroad.
The forthcoming merger comes within the scope of Crédit Agricole SA’s strategy, defined in its medium-term plan, to identify growth drivers and bolster synergies among its businesses.
By absorbing CAII, Amundi Immobilier’s AUM will almost reach €20bn at the end of 2016 (against more than €12bn as at 31 December 2015).
In detail, the deal will consist in Crédit Agricole Immobilier contributing CAII shares to Amundi in return for Amundi shares.
“Based on a valuation of €29.3 million for CAII and a valuation of €43 for the Amundi share (representing the average share price in August), 680,232 new Amundi shares will be issued for the benefit of Crédit Agricole Immobilier. This new share issue represents 0.4% of Amundi’s capital. The transaction will have a neutral impact on Amundi’s net earnings per share in 2016,” Amundi explained.
The transaction is subject to the fulfilment of the usual suspensive conditions, notably obtaining regulatory and tax-related authorisations.
The new share issue is expected to occur in Q4 2016.
Amundi Immobilier has 60% of retail customers and 40% of institutional clients.
According to French real estate research institute IEIF, the firm was leading the local market with 15% market share in terms of AUM as at end June 2016 while it ranked second regarding inflows with 38% market share in the first half of 2016.