The hardware store group Hornbach wants to swallow its subsidiary Hornbach Baumarkt AG completely and take it off the stock exchange.
The group listed in the S-Dax is offering the other shareholders of the subsidiary EUR 47.50 per share in cash, as he announced on Monday in Bornheim, Palatinate.
This corresponds to a premium of 13.8 percent on the closing price on Friday.
Hornbach Holding currently holds 76.4 percent of the shares in Hornbach Baumarkt AG.
The takeover should be completed by the beginning of March at the latest.
The subsidiary's share price rose after the news and was most recently 13.8 percent up on the takeover offer.
Agreement signed
With the delisting of the subsidiary, the group wants to simplify its capital market presence and eliminate inefficiencies in the existing structure.
Both companies have reportedly signed a corresponding agreement.
The group initially wants to finance the purchase price with the help of a credit line and then replace it with long-term debt or equity instruments.
In the third quarter, the holding company increased sales by 2.2 percent to 1.4 billion euros.
For the full year, the company expects sales to grow by two to seven percent, and adjusted operating profit is likely to be between 330 and 380 million euros.