The executive board of Immofinanz has recommended that its shareholders not accept a partial public offering of €2.80 per Immofinanz share, which was announced today by PHI Finanzbeteiligugns und Investment, a subsidiary of CA Immobilien Anlagen, and by O1 Group. The board told shareholders that it believes the offer to be insufficient to Immofinanz’s real value.
“The offer does not adequately consider the interests of all Immofinanz shareholders,” wrote the company’s executive board. “In consideration of the current business activities and prospects for Immofinanz, the Executive Board has reached the conclusion that the offer price of €2.80 per share is inappropriate.“ This viewpoint is supported by a statement (Fairness Opinion) issued by VICTORIAPARTNERS.
Immofinanz’s supervisory board of Immofinanz stated its agreement with the verdict of the executive board, which charges that the offer is approximately 36.4 percent below the EPRA NAV per Immofinanz share (€4.40 as of 31 January 2015) and slightly higher than the current share price (closing price of the share on the Vienna Stock Exchange on 2 April 2015: €2.76). The board further charged that the price reflected a valuation based on extraordinary circumstances, by which it meant the impact of the Ukraine crisis on Immofinanz’s Russian portfolio.
“According to an estimate by the Executive Board, the offer price would still be roughly 25 percent below a revised EPRA NAV per share even when considering a hypothetical extreme scenario – e.g. assuming the attributable NAV contribution of the property portfolio in Russia to be zero. However, the Executive Board considers this type of negative scenario for the property portfolio in Russia to be virtually impossible.”
