IMMOFINANZ AG's executive board said the €2.10-per-share offer price by a Starwood Capital Group affiliate to acquire up to a roughly 5% stake in the Austrian real estate company is "inappropriate."
An affiliate of the U.S.-based private equity firm recently launched an independent offer to acquire up to 55,831,570 bearer shares of IMMOFINANZ. In a separate offer, the unit offered to acquire up to 25,690,167 bearer shares of CA Immobilien Anlagen AG, or approximately 26% of the Austrian real estate company's overall issued bearer shares, at €27.50 apiece.
IMMOFINANZ said in a release that while it appreciates Starwood's interest in the company, it considers the offer price too low, given the sustainable and steady improvement in the company's key performance indicators and the positive outlook for its business development.
The company noted that the offer price is approximately 25% below the EPRA net asset value of €2.81 per IMMOFINANZ share, as of Sept. 30, 2017, and only 4.6% over the March 21 closing per-share price, prior to the offer announcement.
Separately, Reuters quoted CA Immobilien CFO Hans Volkert Volckens as saying that the company needs more details from Starwood in order to reach a decision about the offer price and the offer itself.
"In addition to the price, you need to take into account what Starwood's plans are, [and] which strategic direction the offer includes," Volckens added, according to the report.
Commenting on a potential merger among CA Immobilien, IMMOFINANZ and rival Austrian commercial property company S IMMO AG, Volckens reportedly said he believes that "[a]ny form of consolidation in the commercial real estate sector makes sense."