European commercial real estate group Immofinanz has received an approval from its supervisory board to enter into negotiations with its core shareholder CPI Property Group (CPIPG) concerning the acquisition of shares in Vienna-based real estate investment compan S Immo.
Currently, Immofinanz directly holds approx. 26.49% of S Immo. CPIPG directly holds 52.7% of S Immo, which may further increase as a result of CPIPG’s mandatory takeover offer over S Immo.
A potential acquisition of shares in S Immo by Immofinanz from CPIPG would be envisaged to take place by the end of this year (2022).
”The potential transaction would involve at least 17,305,012 shares in S Immo (approx. 23.51%) to form a controlling stake in S Immo within Immofinanz and would take place at a fair market price to be negotiated and confirmed by an independent fairness opinion. The purchase price may 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 should take place,” said Immofinanz.
”With this acquisition, Immofinanz would complete a long-term strategic goal and proceed with the consolidation of both companies to capture future mutual synergies.”