A bid has been launched for CB Richard Ellis, the world’s biggest real estate services company. The company announced this morning that it had received a buyout offer from management backed by Blum Capital Partners valuing the company at US$740m.
The cash offer equates to US$15.50 per share and includes US$400m of debt which would be either assumed or refinanced.
The management team comprises: CB Richard Ellis chief executive Ray Wirta; Brett White, chairman of the Americas for CB Richard Ellis; Freeman Spogli & Co; Fred Malek, a director of the company; and the Koll Holding Company, which is controlled by CB Richard Ellis director Don Koll.
CB Richard Ellis is the largest US broker by turnover, generating US$1.2bn in revenues in 1999.
The bidding group currently owns approximately 38% of CB Richard Ellis’ outstanding common stock. Employees will have an opportunity to participate as equity investors.
Blum Capital is a private equity and strategic block investment company with about US$3.8bn of equity capital under management.
CB Richard Ellis directors have formed a special committee to review the proposal and consider other alternatives. CB Richard Ellis shares closed at US$13-1/8 on Friday, Nov 10.
