Immofinanz buys shares of CA Immo for €604 mln, plans greater CEE focus

Deals

official website

Paving the way for a merger that would unite two big real estate players in Hungary and Central and Eastern Europe, Immofinanz announced today that it signed a purchase agreement yesterday to acquire 25,690,163 shares, or roughly 26% ownership, of CA Immo for €604 million. Immofinanz said in a press release that it would be selling its Russian holdings and focusing more on this region.

Haller Gardens office building in Budapestʼs District 9. (Photo: Official website of Immofinanz)

The purchase price amounts to €23.50 per share, and is to be funded with additional debt and the issuance of a convertible bond, the press release said. 

The acquisition is seen as the first step towards a planned full combination of Immofinanz and CA Immo by way of a statutory merger, according to the statement. Prior to the envisaged merger, Immofinanz is planning to demerge or sell its Russian asset portfolio, which is characterised by different market dynamics and a higher risk profile, Immofinanz said.

The majority of Immofinanzʼs portfolio is in this part of the world, in particular in Hungary, Austria, Poland, Czech Republic, Romania and Slovakia, as well as on the seven major cities in Germany. CA Immo predominantly works in Central Europe, with branches in Hungary, Austria, Germany, Czech Republic, Poland and Romania.

“The combined company will be a leading real estate company in Central and Eastern Europe. The portfolios of both companies are very complimentary and we expect significant synergies from the transaction,” said Dr. Oliver Schumy, CEO of Immofinanz. “Today’s announcement marks another very important step in the transformation of Immofinanz. With the acquisition of the stake in CA Immo and the decision to dispose of our Russian portfolio we have now created the basis for this merger.”

“The strategic logic of a combination between CA Immo and Immofinanz is clear. Substantial synergies could be created from such a combination, which of course would be subject to shareholder approval. We are looking forward to initiating a meaningful dialogue with Immofinanz about a combination of our two companies to the mutual benefit of both sets of shareholders,” Frank Nickel, CEO of CA Immo said.

“A merger of CA Immo with Immofinanz is the logical evolution for our company. We believe it is now the right time for such a transaction,” Dr. Wolfgang Ruttenstorfer, Chairman of CA Immo added.

Immofinanz noted that the transaction announced today is subject to conditions precedent, in particular merger control clearance in Austria, Germany and other jurisdictions as well as approval by the supervisory board of Immofinanz AG and approval of the management board of CA Immo for the transfer of the registered shares.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.