(Alliance News) - Globalworth Real Estate Investments Ltd said on Tuesday that Zakiono Enterprises, owned by Property Group SA and Aroundtown SA, now holds a controlling stake in the property investor.
Globalworth said that it was notified of transactions of the company's shares by Property Group SA and Aroundtown SA which has resulted in Zakiono Enterprises owning a controlling stake in Globalworth.
This comes after Property Group and Aroundtown extended a takeover offer for Globalworth last Thursday.
The Guernsey-based property company said Zakiono now owns a 52% stake in the company, providing it with majority voting rights and statutory control over the company, including the ability to appoint and remove directors from the board.
"The independent committee is considering the implications of the change of control for the company and for minority shareholder rights and protections," Globalworth said.
Globalworth noted that it is currently mulling the implications for shareholder voting and several existing financing arrangements. Governance arrangements will also be considered, including the requirement that the board maintains a majority of independent directors.
This recent development comes shorlty after CPI and Aroundtown decided to extend their takeover offer for Globalworth to July 9, after the offer reached its third closing date last Thursday.
CPI and Aroundtown are both Luxembourg-based real estate investors. Aroundtown's properties are mainly in Germany and the Netherlands, while CPI and Globalworth are focused on central and eastern Europe.
The pair first offered to buy out Globalworth for EUR774 million, or EUR7 per share, in cash in mid-April.
Shares in Globalworth were trading up 1.2% at EUR6.98 each in London on Tuesday afternoon. Globalworth has a market capitalisation of EUR1.53 billion.
Globalworth said the bid, which valued it at EUR1.57 billion, was too low and undervalued its net asset value of EUR8.68 per share on April 26.
The company received a low level of investor support, receiving acceptances from only 2.6% of issued share capital as of last Thursday.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Globalworth (GWI)