IEF Capital, a joint venture of Bouwfonds Asset Management and Inflation Exchange Fund (IEF), said on Wednesday it will persist with its EUR 1.15 bn bid to acquire property fund VastNed Retail, despite the latter's rejection of the offer. On Tuesday, VastNed Retail dismissed the bid, which amounts to EUR 70 per share, as 'substantially below the true value of VastNed Retail shares'.
IEF Capital, a joint venture of Bouwfonds Asset Management and Inflation Exchange Fund (IEF), said on Wednesday it will persist with its EUR 1.15 bn bid to acquire property fund VastNed Retail, despite the latter's rejection of the offer. On Tuesday, VastNed Retail dismissed the bid, which amounts to EUR 70 per share, as 'substantially below the true value of VastNed Retail shares'.
IEF Capital board member Gil Grossman said his company planned to present the offer to all VastNed shareholders, including pension fund PGGM which holds 20% of the shares and which he claimed supports the bid. But VastNed spokesman Arnaud du Pont said the offer was 'far too low and provides no basis to enter into negotiations with IEF Capital.' He said the offer took no account of expected positive reappraisals of VastNed Retail's assets in the final quarter of 2007 and first three months of 2008.
VastNed Retail invests in retail properties in the eurozone and had a portfolio worth EUR 1.7 bn at end-2006.
Property stocks benefited from the news of the bid on the Amsterdam stock exchange on Wednesday. Led by VastNed Retail, shares in Corio, VastNed O/I and Wereldhave all booked gains in midday trading, only to slip back by the close.
