Global reinsurance company SCOR SA(SCO: Quote) Friday said it has agreed to invest in MRM, a real estate company, subject to the French REIT regime, holding a mixed portfolio of retail properties and offices, and acquire a controlling interest in the company to "refocus its activity towards a consistent portfolio of retail assets". Subject to conditions, the transaction is expected to be completed by the end of the second quarter of 2013.
SCOR'S investment, which is to take the form of a cash capital increase of between 41 million euros and 54 million euros is expected to be accompanied by the deleveraging of the company to achieve a sustainable financial structure negotiated prior to SCOR's entry into the capital of MRM. SCOR is expected to hold a maximum of 59.9 percent of the capital of MRM upon the completion of the capital increase.
SCOR said it aims to improve the occupancy rate of MRM's assets, to bring the debt ratio back to a reasonable level in order to avoid any liquidity problems in the medium term, and to restore the profitability of the company.
by RTT Staff Writer
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