TAG Immobilien AG — M&A Activity 2004

Mar 23, 2004

News Details

Ad-hoc | 23 March 2004 14:41

TAG Tegernsee

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Additional negotiations on acquisition of shares in Bau-Verein successfully completed – Purchase price reduced and payment schedule extended to three years – Option for convertible bond – Substantial improvement in capital structure Hamburg, March 23, 2004. In January 2002, the international investors ABP Investments, BPF-Bouw and Jones Lang LaSalle Co-Investment Inc. exercised a put option resulting in TAG acquiring an 11.75% interest in Bau-Verein zu Hamburg AG. The residual purchase price of roughly EUR 15 million has now been reduced by one third. At the same time, the balance of the purchase price will be paid in instalments up until 2006. In return, TAG will grant the TAG investors an option to transform the residual purchase price receivable into a convertible bond. The reduction in the purchase price was agreed upon in connection with the convertible bond as subsequent partial compensation for the extraordinary restructuring expenses incurred by Bau-Verein zu Hamburg AG in fiscal 2001. The extended repayment period for the residual purchase price also constitutes partial compensation. As a result of this mutual agreement, TAG’S liabilities have been reduced by EUR 5 million, leading to a substantial improvement in its capital structure in connection with the cash capital increase completed in January 2004. In addition, there is a further possibility of transforming borrowed funds into equity in the medium term if the investors exercise their option to transform their investment into a convertible bond which is then converted into equity. These positive results constitute a further milestone in TAG’S efforts to optimize its balance-sheet ratios and structures and have further improved the Company’s position in possible acquisition or merger processes in 2004. Management Board of TAG Contact: Olaf G. Borkers Member of the Management Board Tel: 0049 40 306059-40 Fax: 0049 40 306059-49 e-mail: info@tag-ag.com end of ad-hoc-announcement (c)DGAP 23.03.2004 ——————————————————————————– WKN: 830350; ISIN: DE0008303504; Index: SDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 231441 Mär 04