trending Market Intelligence /marketintelligence/en/news-insights/trending/seiOcLseOh17EhaxHYyG9Q2 content esgSubNav
In This List

Adler eyes increased stake in conwert with up to 6 million share purchase option


Japan M&A By the Numbers: Q4 2023

Case Study

An Investment Bank Taps S&P's Real Estate Modeling Expertise


FIMA EUROPE 2023: Exploring the Intersection of Data, Governance, and Future Trends in Finance


Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)

Adler eyes increased stake in conwert with up to 6 million share purchase option

Germany-basedAdler Real Estate AGis looking to boost its stake in Austrian group .

Adlersaid its wholly owned subsidiary, MountainPeak Trading Ltd., signed a calloption with Petrus Advisers Investment Funds LP that entitles the subsidy toacquire up to 6 million shares in conwert within the next two months atapproximately the current trading price.

Theshares represent approximately up to 6.5% of conwert's total subscribedcapital. If the option is exercised, Adler's total potential stake in conwertcould reach between 27.7% and 28.7%.

Ifexercised, the acquisition will be funded through a bank loan. Proceeds fromthe recent 2016/2021 convertible notes issuancewill not be used to finance the stake acquisition.

Theexercise of the call option will be subject to approval from the AustrianCompetition Authority and the German Federal Cartel Office.

Earlier,the two companies became involved in a dispute after Adler sought to replacethree conwert board members with its own nominees, which conwert regarded as aprologue to atakeover. Adler continued to denythe takeover allegations, while the Austrian Takeover Commission launched aformal investigationinto the matter in March to determine if Adler and other shareholders wereworking in concert to take over conwert. It was reported that if the companieswere found to be working together and their combined holdings in conwert totalmore than 30%, they would be required to launch a full takeover bid.

In aMarch 23 earnings call, conwert CEO Wolfgang Beck had confirmed that the twocompanies will restart talkson joint property management.

Regardingthe option to purchase additional conwert shares, Adler CEO said the group is lookingto benefit from the "upside potential" of conwert's shares and thecompany's improved performance.