JC Flowers pounces on Hypo

US private equity group JC Flowers is leading a consortium which has offered to buy a 24.9% stake in Hypo Real Estate, a Frankfurt-listed property finance business.

Hypo has been a prominent victim of the liquidity crisis. A sub-prime related write-down announced in January sent its shares plunging. Since then it has been looking for a long-term shareholder to stabilise its future. The Munich-based company’s prospects looked brighter earlier this week when it issued a €1bn (US$1.7bn) bond.

The JC Flowers-led offer of €22.50 represents a premium of 25% on the shareprice.