CPI Property Group (CPIPG) has moved one step closer to taking over Immofinanz, after securing S Immo's stake in its Austrian peer.

An Immofinanz Stop Shop asset

An Immofinanz Stop Shop Asset

The shares are being acquired for €23 each, equating to a total transaction of around €400 mln.

CPIPG, which has recently amassed a 35% stake in Immofinanz, said that by acquiring S Immo's 12.69% share in the firm, it would hold a 48% stake in Immofinanz.

The move comes after CPIPG tabled a €21.20 offer to Immofinanz shareholders for all outstanding shares in the firm, a bid which Immofinanz described as 'too low'. S Immo had said in the past that it would not sell its Immofinanz stake to CPIPG, and was pursuing the takeover of Immofinanz independently.

Immofinanz owns 26.5% of S Immo, making it the largest shareholder in its smaller peer. However, despite this, S Immo has now agreed to yield its stake in the firm to CPIPG, effectively exiting the takeover race.

Following the transaction, CPIPG said it would improve its full takeover offer for Immofinanz in accordance with the Austrian Takeover Act.

The offer and completion of the share purchase agreements are subject to merger control clearance in Austria, Germany, the Czech Republic, Hungary, Poland, Romania, Serbia, and Slovakia.

As of today, merger control clearance has already been obtained by the competent authorities in Austria, Czech Republic, Germany, and Romania.