Austrian real estate group Immofinanz has announced plans to acquire the remaining shares of property investor S Immo from its current core shareholder, CPI Property Group (CPIPG).
The potential acquisition involves 28,241,094 shares or approximately 38.37% of S Immo, currently held by CPIPG. Currently, Immofinanz directly owns 50.60% of S Immo.
Immofinanz is offering a fair market price, with a maximum of €22.05 per share, which aligns with the cash compensation offered to minority shareholders in a separate squeeze-out procedure that affects 5,246,664 S Immo shares, or around 7.13% of the share capital.
A court-appointed expert, BDO Austria, will review the fairness of the €22.05 price. S Immo shareholders will have a chance to vote on the squeeze-out at an extraordinary general meeting scheduled for 14 October.
For its part, CPIPG said that any transaction’s total upper limit would be €623 mln.
To facilitate the transaction, CPIPG is expected to provide long-term financing to Immofinanz and the deal may also include a discount.
Upon completion of the purchase, which is expected to close before the end of September and subsequent squeeze-out, Immofinanz will become the sole owner of S Immo.
S Immo is a Vienna-based CEE-focused property investor, with assets in Austria, Germany, Hungary, Romania, the Czech Republic, and Slovakia. The portfolio is mainly made up of offices and includes retail, hotel, and residential properties.
S Immo saw a significant revenue increase to €185.6 mln in the first six months of 2024, up from €137.8 mln in the same period in 2023, mainly due to the purchase of profitable rental properties in the Czech Republic and Austria.
Despite sales in Germany and Austria, S Immo’s total assets increased to €4.26 bn as of 30 June, up from €4.18 bn a year earlier, because of acquisitions in the Czech Republic.
