LONDON-DTZ, a global real estate firm with offices in 145 cities in 43 countries, has announced that it has selected Sydney-based UGL Ltd. as a preferred bidder to take over the company. The combined potential firm of DTZ and the UGL Services could create one of the world’s largest real estate services operations, with a combined pro forma revenue of about $1.6 billion.
According to a DTZ statement this morning, the potential merger would end up with about 24,000 employees and 225 offices in 45 countries. “The key strategic benefit would be the bringing together of DTZ’s business scale in Europe, Middle East and Asia Pacific with UGL’s end-to-end corporate real estate and facilities management services to corporations, governments and institutions in Australia, New Zealand, North America and the Middle East,” according to the statement.
On Monday, DTZ announced that it was for sale again, and that given its level of debt there is minimal value, if any, that may be attributed to the ordinary shares of the company. The firm’s stock plunged almost 90%, from about $30 per share to about $5 per share.
In a UGL statement this morning, the company confirmed it has been engaged in the recent process with DTZ regarding a possible offer for the company. “There is no certainty that a firm offer will be made by UGL for DTZ,” according to the UGL statement. “A further announcement will be made to update the market when appropriate.”
The deadline for UGL to act on this matter is Dec. 6. Oriel Securities is acting as a financial adviser and broker for DTX on this action. France-based Saint Georges Participation (SGP) made a purchase offer for DTZ earlier this year for a reported $222 million, but the deal fell through.
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