The major CA Immo shareholder, who claims to have increased his stake to 29.99 percent in the past few weeks, announced on Friday evening a takeover offer for the remaining shares for EUR 34.44 per share. This means that CA Immo is valued at EUR 3.4 billion.
Starwood is only concerned with expanding its stake in the Austrian company, a specific share threshold has not been set as its goal, the bidder announced through its Luxembourg holding company. Starwood also plans to submit an offer for CA Immo’s convertible bonds.
CA Immo announced that the Management Board is evaluating the situation. The company wants to publish a statement addressed to the shareholders in due course
The offer for the shares is almost twelve percent above the closing price of the CA Immo share on the Vienna Stock Exchange. The stock had risen in the past few weeks since the Americans began buying more shares. Starwood joined CA Immo in 2018 when the investor acquired the 26 percent package from rival Immofinanz for 758 million euros. With a takeover offer for CA Immo for 27.50 euros per share, the Americans were previously offended by their shareholders.
CA Immo, which specializes in office buildings in central European metropolises, welcomed the entry at the second attempt: Starwood is a financial investor with an excellent reputation focused on global real estate investments. His interest underlines the positive development of CA Immo.
Krysto Nikolic, head of Starwood’s real estate division in Europe, campaigned for CA Immo shareholders in Friday’s announcement. The takeover offer is a good opportunity for them to turn their investment into cash. “We look forward to continuing to support society,” he said. “It is also one of Starwood Capital’s objectives in connection with the offer that CA Immo maintain an investment grade rating.”
IVA finds Starwood offer for CA Immo “not convincing”
The small investor association IVA finds the takeover offer of the major shareholder Starwood Capital to the shareholders of the listed Vienna office property group CA Immo “not convincing”. The announced offer of 34.44 euros per share (including dividend for 2020) is well below the last reported industry value of 38.36 euros per share (EPRA NAV), the interest association for investors said in a statement on Sunday.
“With its premium on the current stock exchange price, the offer initially sounds attractive,” said Florian Beckermann, Managing Director of the IVA. “But it could also be an attempt to get the silverware at a bargain price. The intrinsic value is a good guide in any case.”
The IVA generally recommends studying the written offer documents of the “Anticipatory Mandatory Offer” as well as the recommendations of the Management Board, the Supervisory Board and the expert’s report after publication. In view of the fact that CA Immo even paid an attractive dividend of EUR 1 per share in the crisis year 2020, it still has an extremely solid balance sheet and financing structure and claims for damages of EUR 1.9 billion from the Buwog case The offer price of 34.44 euros per share was “not convincing”.
In Viennese trading, the CA Immo share temporarily gained 14.29 percent to 35.20 euros.
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Immo share gains double digits Major shareholder Starwood Capital Immo IVA Offer convincing