CPI Property Group - comment

With the squeeze out of minorities at the S Immo level, we are not surprised that CPI and Immofinanz are looking at a possible combination of the businesses. CPI’s 38% stake in S Immo is worth €600m, and the 11% minorities in Immofinanz are valued at €400m. If CPI were to buy out the minorities at Immofinanz, it could push its equity holding in S Immo into Immofinanz in exchange for cash. The process will take some time. We had expected CPI would wait until the S Immo squeeze-out was completed, but this will take time.