WOOD Flash – Immofinanz: suspends merger process with CAI, may sell the shares
Immofinanz has announced that it is suspending the merger process with CA Immo, based on the supervisory board’s decision at the meeting held today. According to the statement, the company no longer expects the merger to take place in 2018. According to the press release, Immofinanz is also evaluating other options, including the disposal of the shares.Separately, the company announced a preliminary extension of the contract with CFO Stefan Schonauer, until 30 April 2021.
We expect the shareholder pressure on Immofinanz to sell the CA Immo stake to increase, following the supervisory board’s decision. We see Immofinanz trading at a 5-6% 2019E FFO yield. While we believe that, for Immofinanz, the gradually improving FFO should prevent tangible share price weakness from the current levels, we believe that what remains relatively weak profitability is likely to cap the upside for the shares, and we reiterate our HOLD recommendation on Immofinanz. We believe that the decision is positive for CA Immo, as it, at least temporarily, removes an important risk factor from the investment case. We continue to prefer CA Immo (HOLD, PT EUR 29.0) to Immofinanz.
Immofinanz is a real estate company, based in Austria, that invests in private and commercial properties. Co.'s main activities are the rental and management of its portfolio as well as development projects and portfolio optimized sale. Co.'s activities are concentrated on prime properties in four core segments: retail, office, logistics and residential. The diversification of risk is supported by Co.'s portfolio in eight core countries: projects in Austria and Germany form the basis for investments in Czech Republic, Slovakia, Hungary, Romania, Poland and Russia. Co.'s properties include apartments, hotels, offices, retail outlets and garages.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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