Germany postpones privatisation of property firm TLG

cimg0134from The Guardian Online….
BERLIN, Nov 6 (Reuters) – Germany has postponed the planned privatisation of state-owned property company TLG Immobilien GmbH due to difficult market conditions, the Finance Ministry said in a statement on Thursday.
The delay follows last month’s postponement of the multi-billion euro initial public offering (IPO) of rail operator Deutsche Bahn due to market turbulence.
TLG Immobilien, which was originally created in 1991 to handle the sale of real estate belonging to the former communist state of East Germany, was due to be privatised later this year.
The firm, which has been active as a buyer on the market since 2000, had property assets worth more than 1.4 billion euros ($1.8 billion) as of the end of 2007. It is one of the largest real estate companies in eastern Germany.
“Due to difficult conditions in the international financial markets, there are currently no expectations for a successful privatisation,” the Finance Ministry said. “The company will thus remain in government hands for the time being.
“But the in the medium-term the privatisation remains on the agenda,” it added.
Just days ago the ministry said preparations for the privatisation were heading toward their final stages.
According to media reports, potential buyers of TLG included U.S. investment companies Lone Star and Oaktree.
In 2007, TLG made a net profit of 52.4 million euros, according to figures on the company’s website. (Reporting by Gernot Heller and Dave Graham, editing by Will Waterman)
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