Immofinanz has taken advantage of the recent sharp fall in share prices and purchased shares in its subsidiary Immoeast on the stock exchange. The Austrian property group says that its stake in Immoeast, which it founded as a subsidiary in 1999 to manage its activities in Central Europe, is set to increase from 50.46% to as much as 54.9%. Immofinanz says that if the share price remains attractive, its purchases will continue over the coming week and beyond.
Immofinanz has taken advantage of the recent sharp fall in share prices and purchased shares in its subsidiary Immoeast on the stock exchange. The Austrian property group says that its stake in Immoeast, which it founded as a subsidiary in 1999 to manage its activities in Central Europe, is set to increase from 50.46% to as much as 54.9%. Immofinanz says that if the share price remains attractive, its purchases will continue over the coming week and beyond.
The profit dilution feared by some analysts in the wake of Immoeast’s issue of nearly 300 million new shares in May does not appear to have materialised, resulting in its shares trading at a discount. Net asset value per share reached EUR 10.20 at the end of Immoeast’s business year on 30 April 2007, while on July 11th the company's share price stodd at EUR 8.44. Its closing price last Friday was EUR 8.24. Immofinanz CEO Karl Petrikovics said that the company sees a unique opportunity to increase its stake in Immoeast at extremely attractive prices.