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Globalworth bid sends shares soaring

Globalworth makes €134m acquisition of office complex in Poland

Globalworth bid sends shares soaring –  CPI Property Group S.A. and Aroundtown SA have announced the terms of a cash offer for Globalworth Real Estate Investments at €7 per share. The bidding vehicle is Zakiono Enterprises Limited.

The offer values Globalworth at approximately €1,571m and represents a premium of approximately:

  • 19.5% over the closing price of €5.86 on 13 April 2021; and
  • 18.6% over the volume weighted average price for the one month period ended on 13 April 2021.

Zakiono currently holds (including Globalworth Shares it has agreed to acquire) 113,879,464 Globalworth Shares representing approximately 51.5% of the existing issued share capital of Globalworth. Zakiono, also holds warrants over a further 2,830,020 Globalworth shares.

Zakiono is a Cyprus incorporated company, which is wholly-owned by Tevat Limited, a Cyprus incorporated company currently wholly-owned by CPI. Upon or prior to the offer for Globalworth becoming unconditional in all respects, Aroundtown will exchange its Globalworth Shares for shares in Tevat, such that CPI and Aroundtown will each hold 50% of the voting rights in Tevat and 57.3% and 42.7% of the economic rights in Tevat respectively.

Globalworth board statement

Globalworth’s board released a statement this morning that said: “The Company notes the announcement today by CPI Property Group S.A. and Aroundtown SA of a firm intention to make a cash offer for the entire issued, and to be issued, share capital of Globalworth not already owned or controlled by the Consortium at EUR 7.00 per Globalworth share pursuant to Rule 2.7 of the City Code on Takeovers and Mergers (the “Offer”).

Following the Consortium notifying the Company of its intention to make an offer, the Company established an independent committee of the Board. No proposal or details as to the terms of any offer were received by the Company before this morning’s announcement. The independent committee will evaluate the Offer and a further announcement will be made in due course.

Shareholders are strongly advised to take no action in relation to the Offer at this time.”

About CPI

CPI is one of the largest real estate companies in Central and Eastern Europe. It is a long-term investor in income-generating assets located predominantly in the Czech Republic, Berlin, Warsaw and the broader CEE region. CPI owns and operates a large, high-quality and diversified real estate portfolio valued at an estimated EUR 10.3 billion as at 31 December 2020. Office properties are CPI’s largest segment, accounting for 52 per cent. of the portfolio value as at 31 December 2020, followed by retail assets (22 per cent.), residential properties (9 per cent.), hotels and resorts (7 per cent.) and land bank and other – development, industrial, agricultural and logistics – properties (11 per cent. in aggregate), respectively. Geographically, 41 per cent. of the portfolio in terms of value was located in the Czech Republic, 25 per cent. in Germany, 15 per cent. in Poland, 6 per cent. in Hungary, 6 per cent. in other CEE countries and the remaining 6 per cent. in Western Europe, respectively, as at 31 December 2020. CPI’s office properties are primarily located in four Central European capital cities – Berlin, Prague, Warsaw and Budapest – whereas the retail portfolio mainly comprises dominant, regional shopping centres and retail parks in the Czech Republic, Poland and Hungary. CPI’s strategy is to continue growing its portfolio in the CEE region, with a primary focus on offices in Prague, Berlin, Warsaw and other major cities. As at 31 December 2020, Mr. Radovan Vitek, a Czech entrepreneur, controlled 94.18 per cent. of CPI’s voting rights.

About Aroundtown

Aroundtown is a Luxembourg incorporated real estate company with a focus on income generating quality properties with value-add potential in central locations in top tier European cities primarily in Germany and the Netherlands, with its shares admitted to trading on the regulated market of the Frankfurt Stock Exchange (Prime Standard). Aroundtown has an investment grade rating from S&P (BBB+). Aroundtown owns and operates a large, high-quality and diversified real estate portfolio valued at approximately EUR 24.5 billion  as at 31 December 2020, including 41per cent. of Grand City Properties S.A.(“GCP”). Office properties are Aroundtown’s largest segment, accounting for 51 per cent. of the portfolio value as at 31 December 2020, followed by hotels (24 per cent.), residential properties (14 per cent.), retail (7 per cent.) and logistics and other properties (4 per cent. in aggregate), respectively. Geographically, 86 per cent. of the commercial portfolio in terms of value, excluding GCP, was located in the Germany and the Netherlands as at 31 December 2020.

Aroundtown invests in commercial and residential real estate which benefits from strong fundamentals and growth prospects. The commercial properties are held by Aroundtown, and in addition Aroundtown holds a substantial interest (approximately 41 per cent.) in GCP, a publicly traded real estate company that focuses on investing in value-add opportunities predominantly in the German residential real estate market as well as the London residential real estate market. Operating with a fully integrated real estate value chain Aroundtown targets cash generating properties with upside potential in terms of rental income and/or occupancy, lease and tenant structure, cost level optimisation and consequential value. Through an intensive property management, including operational and repositioning activities, Aroundtown seeks to further improve its portfolio results, create secure and strong cash flow generating characteristics and benefits from the portfolio’s internal growth potential. Aroundtown believes that this enables it to create significant value in its portfolio. Aroundtown’s strategy is centred around its main pillars and continuously improving upon operational and financial metrics, with a centrally located portfolio in top tier cities.

GWI : Globalworth bid sends shares soaring

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