Austrian property developer Immofinanz said this week that a significant majority of its shareholders have approved a planned merger with its CEE development arm Immoeast.
Austrian property developer Immofinanz said this week that a significant majority of its shareholders have approved a planned merger with its CEE development arm Immoeast.
'99.99% [of shareholders] voted in favour, thereby clearly exceeding the three quarters majority necessary to pass the resolution', the company said in a statement on Thursday. The merger, announced in December, will be retroactive from April 30, 2009 and involves a share swap deal. The merger is designed to reduce costs further and increase efficiency within the group.
As part of the merger process, Immofinanz plans to carry out a capital increase of up to EUR 589 mln by issuing around 567 million new shares to be distributed among Immoeast's shareholders in a proportion of three Immofinanz shares for every two Immoeast shares.
Immoeast's shareholders are due to vote on the merger on Thursday.
The merger will lead to the creation of a group with nearly EUR 15 bn in real estate assets in Germany, Austria, France, Switzerland and Central and Eastern Europe.