* Board accepts raised offer of 8.1 SPS shrs per Jelmoli shr
* Rejected initial offer of 7.7 SPS shrs per share on June 2
* Combined company with 8 bln Sfr real estate portfolio
ZURICH, June 12 (Reuters) - Swiss retail real estate company Jelmolihas agreed to an improved takeover bid from Swiss Prime Site after rejecting a lower offer earlier in June.
Jelmoli, best known for the Zurich department store of the same name, said late on Thursday SPS had raised an initial June 2 exchange offer from 7.7 to 8.1 SPS shares for one Jelmoli share, which the Jelmoli board has recommended to shareholders.
"I am proud to be associated with a transaction which will create one of Europe's leading real estate companies unprecedented in its scale in Switzerland," said Jelmoli Board Chairman Christopher Chambers.
SGS said in a separate statement that Jelmoli's agreement meant the integration of the companies could be implemented "immediately and more efficiently".
The merger will create Switzerland's biggest real estate firm with a portfolio worth about 8 billion Swiss francs ($7.43 billion). Jelmoli said that upon completion of the offer, Jelmoli shareholders will have a share of approximately 47 percent of the combined company
The offer values Jelmoli at 420.80 Swiss francs per share based on the 51.95 franc closing price of SPS on June 10, a premium of less than 2 percent compared to Jelmoli's June 11 close.
Jelmoli, which spun off its Athris unit at the end of March, said there was no adjustment in an exchange offer for the planned issuance of shares in Basel-based real estate development unit Tivona.
On June 2 Swiss Prime Site bought 29.89 percent of Jelmoli from Geneva-based investment company Pelham Investments and offered to purchase the outstanding Jelmoli shares for 7.7 SPS shares each. The Jelmoli board rejected that offer, saying it undervalued the company. ($1=1.077 Swiss Franc) (Reporting by Martin de Sa'Pinto; Editing by Jon Loades-Carter)