Neinor absorbs Quabit and increases portfolio to €2.000M

Neinor absorbs Quabit and increases portfolio to €2.000M

Borja García-Egotxeaga,Neinor Homes’ CEO, and Jordi Argemí, Deputy CEO

The project of the merger by absorption of Quabit Inmobiliaria was greenlighted by Neinor this Tuesday. In releases made available at the Comisión Nacional del Mercado de Valores, the companies explained that the operation will be carried out through share exchange, with Neinor issuing new shares for Quabit’s Class A shareholders. As a result, Neinor Homes will incorporate assets estimated at around 2 billion euro and remain listed at the continuous market.

With this merger by absorption, Neinor Homes consolidates itself as the largest developer in Spain and reinforces its presence in the housing markets of the Central Region (Madrid and Corredor del Henares) and the Malaga/Costa del Sol region.

The absorption process will be subject to the approval of both companies’ Shareholders’ General Meetings, which are expected to take place in March or the beginning of April, following which, Neinor Homes will have enough terrains to develop more than 16.000 dwellings.

Neinor Homes’ current shareholders control around 93% of the new company, whereas Quabit’s class A shareholders control 7% (resulting from the share exchange through which they will receive one Neinor Homes share per each 25,9650 Quabit Class A shares they own). Furthermore, an already ongoing debt restructuring operation will be carried out.

Neinor Homes’ CEO, Borja García-Egotxeaga, remarked: «With Quabit’s absorption we created the leader of housing development in Spain, with a financial stronghold and a larger dimension and presence which allows us to position ourselves so as to face the current challenges and reinforce our commitment to offering the best product to our clients».

Deputy CEO, Jordi Argemí, recalled that «one year ago we predicted the consolidation process that would take place within the development segment, and this operation proved that Neinor not only was able to lead operational results within the segment in the last few years but also this consolidation process. We are very happy and convinced it will generate value to our shareholders».

Félix Abánades, Quabit’s CEO and president, highlighted that «within the current context, Quabit’s merger with Neinor was the best news for Quabit’s shareholders, creditors and workers, since it allows them to be part of the largest developer, with high visibility, revenue and cash generation and with a high potential of adding value to each share».

Read the rest of this news in Spanish HERE.

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