Immofinanz targets majority takeover of peer S Immo

Central and Eastern European property specialist Immofinanz has received approval from its supervisory board to enter into negotiations with its core shareholder CPI Property Group (CPIPG) for the acquisition of shares in its peer S Immo.

CPIPG raised its stake in Immofinanz to nearly 77% earlier this year, effectively untangling one of the most complicated corporate ownership structures in the region and ending a long-running takeover dance between CEE's major players.

The next step, agreed by Immofinanz and CPIPG, should see S Immo become a part of Immofinanz. Immofinanz currently holds a direct share of around 26.49% of S Immo, while CPIPG directly holds 52.7%, while potentially more will result from its mandatory takeover offer for the firm.

Immofinanz's acquisition of shares in S Immo from CPIPG should take place by the end of this year. The transaction would involve at least 17,305,012 shares in S Immo (around 23.51%) to form a controlling stake in S Immo within Immofinanz.

The deal will take place at a fair market price to be negotiated and confirmed by an independent fairness opinion. The purchase price is likely to take into consideration the EPRA NAV/NTA of S Immo, share price, a control premium as well as targeted synergies among other relevant market standard price parameters.

For the purchase price, a long-term financing by CPIPG to Immofinanz is expected to take place.

Immofinanz said that the deal for S Immo would 'complete a long-term strategic goal and proceed with the consolidation of both companies to capture future mutual synergies'.


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