IMMOFINANZ: CPI offer price too low
The Executive Board and Supervisory Board welcome the intention of the CPI Property Group (CPIPG) to benefit from the company’s attractive growth potential and support the development and expansion of IMMOFINANZ as a long-term major shareholder. However, the price offered by CPIPG for the IMMOFINANZ share is significantly lower than the current value of the company and does not reflect IMMOFINANZ’s substantial growth potential. The price also fails to include an appropriate control premium for CPIPG’s announced intention to attain control over IMMOFINANZ.
The Executive Board, Supervisory Board and Works Council of IMMOFINANZ today issued statements in which they indicate that the offer price of EUR 21.20 per share is viewed as not attractive and recommend that investors not accept the offer by CPIPG for IMMOFINANZ’s shares and convertible bonds.
The offer price of EUR 21.20 (cum dividend for the 2021 financial year) specified by CPIPG in its anticipatory mandatory offer represents a discount to the reference values used to determine a fair value for the IMMOFINANZ share. The discount of roughly 28% places the offer price clearly below the current (diluted) EPRA NTA per share of EUR 29.45. A comparison with other key valuation benchmarks, e.g. EPRA NAV per share or the IFRS book value per share, also shows high discounts. The offer price does not include any premium to the uninfluenced closing price on 2 December 2021, the day before the announcement of the intention to make a takeover offer. Comparable transactions in the European real estate sector normally include a premium of roughly 24% over the uninfluenced closing price.
Additionally, the offer price is 6.4% below the current price of the IMMOFINANZ share on 24 January 2022. The offer price is also significantly below the price of the IMMOFINANZ share before the outbreak of the COVID-19 pandemic (nearly EUR 27 in February 2020) and the analysts’ average target price of EUR 24.50 (median). Therefore, the price does not include an appropriate control premium for CPIPG’s announced intention to attain control over IMMOFINANZ.