London-listed property investor Globalworth Real Estate Investments has said a €1.6bn (£1.4bn) takeover offer from CPI Property Group and Aroundtown “materially undervalues” the company.
Globalworth said its independent committee set up to review the offer, made earlier this month, believes it “significantly undervalues the company, its assets and its prospects”.
CPI and Aroundtown already own around 51.5% of Globalworth’s shares between them, and priced their offer at €7 a share. The pair said they plan to “enhance Globalworth’s positioning as a leading Central and Eastern Europe commercial real estate owner and operator, both by increasing investment in existing assets and by expanding its portfolio”.
They added: “CPI and Aroundtown believe that this can be best executed under their joint ownership, where access to capital and operational expertise is more readily available.”
Globalworth notes that the offer is a “significant discount” to its EPRA NAV of €8.68 per share, and a discount of more than 27% to its six-month volume weighted average share price pre-Covid-19. It has recommended shareholders take no action over the offer.
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