IMMOFINANZ AG's board suspended further negotiations of a planned merger with CA Immobilien Anlagen AG after the successful sale of its Russian portfolio in December 2017 and instead will evaluate other strategic options.
IMMOFINANZ said the expected improvement in corporate operations following the divestiture should be incorporated "as best as possible" into future negotiations with CA Immobilien, adding that it no longer expects that a merger between the companies is possible in 2018.
IMMOFINANZ will work to improve its operations and concentrate on the benefits of its investment in CA Immobilien over the coming months. Outside of a merger, other strategic options, including a sale of the CA Immobilien investment, will be considered.
IMMOFINANZ purchased a 26% stake in CA Immobilien in 2016 as part of its plan to acquire its fellow Central European commercial real estate company. The merger process was put on hold in December 2016 as IMMOFINANZ sought more time to sell its Russian assets, which was a precondition for completing the deal.
