First Sponsor Group raises stake in Dutch firm NSI

The acquisition will increase the group's stake to 13.52%.

First Sponsor Group is set to purchase more shares from Netherlands-listed firm NSI N.V. for $62.49m or $29.12 apiece.

In a bourse filing, the company said this will involve 2,145,960 NSI shares, representing around  10.65% of the total issued and outstanding ordinary shares. This will be on top of the 579,147 shares First Sponsor Group already holds through another wholly-owned subsidiary which is equivalent to 2.87% of the total NSI shares.

The acquisition will be paid in cash and is expected to be completed on 10 May. It will be funded through First Sponsor Group’s existing cash resources and committed credit facilities. Once settled, this will increase the buyer’s stake in NSI to 13.52%.

First Sponsor Group said the amount was based on arm’s length negotiations that considered NSI’s underlying property portfolio, current property market conditions in The Netherlands, historical and current results of NSI, and its historical dividends.

As of end-March, NSI has 45 office properties across The Netherlands with a market value of approximately $1.49b (€1.02b), with approximately 55% of its portfolio value situated in Amsterdam.

First Sponsor Group said the acquisition is an opportunity for it to gain non-controlling but substantial interest in NSI, and marks the buyer’s expansion of long-term investment in the Dutch real estate market. 

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The company said the transaction is not expected to have a material impact on its consolidated net tangible assets or earnings per share for the current financial year.

€1=S$1.46