(Alliance News) - Globalworth Real Estate Investments Ltd on Monday rejected a takeover bid from CPI Property Group SA and Aroundtown SA.
Globalworth Real Estate, which last week formed an independent board committee to evaluate the EUR774 million offer, said the bid "undervalues" the company.
The offer price of EUR7.00 per share is 19% below the company's EPRA net asset value of EUR8.68 per share as of December31, Globalworth noted.
It also is 27% below the six-month average price of Globalworth shares as of February 21, 2020, meaning before the start of the Covid-19 pandemic, it said.
Globalworth advised its shareholders to take no action. Shares in the company were untraded in London on Monday morning, last quoted at EUR7.34 each.
"The independent committee notes that the consortium has not sought a recommendation for the offer. The independent committee will provide Globalworth shareholders with its formal response to the offer following publication of the offer document by the consortium. Further announcements will be made as and when appropriate," the company added.
CPI and Aroundtown are Frankfurt-listed real estate owners. Aroundtown's properties are mainly in Germany and the Netherlands, while CPI and Globalworth are focused on central and eastern Europe.
If the offer succeeds, CPI and Aroundtown would own 50% each of Globalworth. The buyers plan to increase investment in Globalworth's assets and expand its portfolio, saying joint ownership will give more access to capital and operational expertise.
"Working together as partners will allow us to maximize long-term value while maintaining Globalworth's strong investment grade capital structure and excellent teams in Romania and Poland," CPI Chief Financial Officer David Greenbaum said earlier in April.
Aroundtown shares were 1.1% higher at EUR6.26 in Frankfurt on Monday morning, while CPI Property was untraded, last quoted at EUR0.72.
By Eric Cunha; ericcunha@alliancenews.com
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Globalworth (GWI)