EQS-News: IMMOFINANZ: CPI offer price too low

EQS-News: IMMOFINANZ AG / Key word(s): Offer/Real Estate
IMMOFINANZ: CPI offer price too low

26.01.2022 / 08:28
The issuer is solely responsible for the content of this announcement.

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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^[1][1]. 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.

IMMOFINANZ on a growth course
Moreover, the offer price does not sufficiently reflect IMMOFINANZ’s
outstanding performance in 2021 or the potential of its value-creating
strategy. Successful crisis management and a solid financing structure
with an investment grade rating have formed the basis for top performance
and a fast-tracked growth course. IMMOFINANZ generated the best results in
the past 10 years during the first three quarters of 2021 despite the
ongoing negative effects of the COVID-19 pandemic: The results of
operations (+60% to EUR 180.4 million) and net profit (EUR 295.7 million
after EUR -98.3 million) increased substantially and even topped the very
good pre-crisis level.

IMMOFINANZ intends to continue this success course. Plans for 2022 call
for further strengthening the market positions of STOP SHOP (the largest
retail park operator in Europe) and myhive (innovative and flexible office
solutions) as well as the expansion of the property portfolio from the
current level of EUR 5.0 billion to roughly EUR 6.0 billion. Entry into
the market for sustainable and affordable housing (TOP on STOP) will
create additional earnings opportunities and increase diversification.
IMMOFINANZ expects an increase in pre-tax FFO 1 to over EUR 135 million in
2022, whereby roughly 70% will be distributed as dividends to the
company’s shareholders.

According to the offer document, CPIPG expects a high degree of control
and the ability to substantially influence future strategic measures by
IMMOFINANZ in close cooperation with management and other stakeholders to
the benefit of IMMOFINANZ. The acquisition of an investment by CPIPG can
have a positive effect on the economic development of IMMOFINANZ and also
support the realisation of its sustainable growth targets. The attainment
of control can, however, make it possible for CPIPG to significantly
influence and change IMMOFINANZ’s strategy and business policies, which
could also lead to results that differ from management’s guidance.

IMMOFINANZ will be emission-free by 2040
As part of its growth strategy, IMMOFINANZ will also actively drive the
fight against climate change in the real estate branch. The company’s Net
Zero Emission Strategy requires a 60% reduction of all greenhouse gases
below the 2019 level by 2030 and the end of emissions along the entire
value chain by 2040. That means IMMOFINANZ, as one of the leading European
commercial property companies, will clearly exceed the goal set by the
European Union to become climate neutral by 2050. This pioneering role
will, moreover, substantially strengthen IMMOFINANZ’s competitive position
due to the massive increase in the market demand for
sustainability-oriented investments.

Executive Board members Dietmar Reindl and Stefan Schönauer: “The entry of
the CPI Property Group, one of the leading commercial property companies
in Central Europe, is further proof of our company’s high attractiveness
and great growth opportunities. However, these positive future
perspectives are contrasted by an offer price that does not reflect the
current value of the company, our strong performance during the 2021
financial year or the earnings and growth opportunities created by our
value-creating expansion strategy. We therefore recommend that our
shareholders and convertible bondholders not accept the offer from the CPI
Property Group and, together, realise the great potential inherent in
IMMOFINANZ.”

^[1] EPRA NTA per share as published in the interim financial report by
IMMOFINANZ as of 30 September 2021, based on the issue of 14,963,965 new
IMMOFINANZ shares from the conversion of convertible bonds and the
remaining conversion rights from outstanding convertible bonds with a
total nominal value of EUR 11.7 million (total nominal value less EUR 2.7
million in convertible bonds held by IMMOFINANZ) at the current applicable
conversion price of EUR 20.6333
 

On IMMOFINANZ
IMMOFINANZ is a commercial real estate group whose activities are focused
on the office and retail segments of eight core markets in Europe:
Austria, Germany, Poland, Czech Republic, Slovakia, Hungary, Romania and
the Adriatic region. The core business covers the management and
development of properties, whereby the STOP SHOP (retail), VIVO! (retail)
and myhive (office) brands represent strong focal points that stand for
quality and service. The real estate portfolio has a value of approx. EUR
5.0 billion and covers roughly 210 properties. IMMOFINANZ is listed on the
stock exchanges in Vienna (leading ATX index) and Warsaw. Further
information under: [2]https://immofinanz.com

IMPORTANT INFORMATION
This announcement is issued by IMMOFINANZ AG (IMMOFINANZ) in connection
with the anticipatory mandatory takeover offer published by CPI PROPERTY
GROUP S.A. for shares and convertible bonds in IMMOFINANZ on 12 January
2022 (Takeover Offer). It is for information purposes only and neither an
offer to purchase nor a solicitation to sell securities of IMMOFINANZ. The
conditions and further provisions relating to the Takeover Offer are
disclosed in the offer document published by CPI PROPERTY GROUP S.A. The
offer document and the statements of the Executive Board and the
Supervisory Board are forming the relevant basis and it is strongly
recommended to holders of IMMOFINANZ shares and convertible bonds to
review these documents.

To the extent this announcement contains forward-looking statements
concerning IMMOFINANZ, such statements do not represent facts and are
characterized by the words such as “will”, “expect”, “believe”,
“estimate”, “intend”, “aim”, “assume” or similar expressions. Such
statements express intentions, opinions or current expectations and
assumptions of IMMOFINANZ. These forward-looking statements are based on
current plans, estimates and forecasts, but do not claim to be correct in
the future. Forward-looking statements are subject to risks and
uncertainties that are difficult to predict and usually cannot be
influenced by IMMOFINANZ. It should be kept in mind that the actual events
or consequences may differ materially from those contained in or expressed
by such forward-looking statements.

For additional information contact:
Bettina Schragl
Head of Corporate Communications and Investor Relations
​​​​​​​IMMOFINANZ AG
T +43 (0)1 88 090 2290
M +43 (0)699 1685 7290
[3]communications@immofinanz.com
investor@immofinanz.com
 

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26.01.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: IMMOFINANZ AG
Wienerbergstraße 9
1100 Vienna
Austria
Phone: +43 (0) 1 88090 – 2290
Fax: +43 (0) 1 88090 – 8290
E-mail: investor@immofinanz.com
Internet: http://www.immofinanz.com
ISIN: AT0000A21KS2
WKN: A2JN9W
Listed: Regulated Unofficial Market in Berlin, Frankfurt, Munich,
Stuttgart; Warschau, Vienna Stock Exchange (Official Market)
EQS News ID: 1272811

 
End of News EQS News Service

1272811  26.01.2022 

References

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