CPI Property Group - comment
Immofinanz’s squeeze out of minorities at S Immo will cost €116m; the price proposed is €22.05 per share. Immofinanz will likely be able to fund this out of cash on hand €420m at 30/6). The price is lower than the €22.80 trading price in the lead-up to the announcement, but the trading price now is €22.10, so a requirement for a better offer is not likely. The squeeze-out operation was expected. There will be an EGM at S Immo on 14 October 2024 to approve the transaction, which will also need approval by a court auditor.
We would expect CPI to inject 38% of the company that it owns (Immofinanz already owns 50% +1 share) to clean up the structure, but CPI will not be in any rush. S Immo states that 7.13% of the equity will be affected by the squeeze-out, with the remaining 4.50% being held as Treasury shares.