CA Immo rejects Starwood bid

Austrian property group CA Immo has declined a partial buy-out offer from US property investment firm Starwood Capital Group.

Starwood launched a bid for 26% of CA Immo and 5% of peer Immofinanz in March, with an acceptance period which was extended to 30 May.

However, CA Immo said on Thursday that it would tender neither CA Immo treasury shares not the Immofinanz shares in its possession. The company said that it held about 6% of CA Immo shares, and a 5% stake in Immofinanz.

The Vienna-based office specialist published its Q1 18 results on Wednesday, reporting a 12% rise in net rental income to €43 mln. With a funds from operations (FFO) increase of 18% to €27.7 mln, it remains on target for at least its full-year FFO figure of €115 mln, according to SRC Research.

CA Immo's EBITDA (earnings before interest, tax, depreciation and amortisation) climbed 41% in the quarter, while EBIT rose 32%. CA Immo's financing costs also fell, continuing the trend of the previous year, while net profit rose 25%, from €23 mln to €29 mln.

According to SRC Research, Starwood's offer for CA Immo shares on 22 March with a strike price of €27.50 was unlikely to attract 'a very high acceptance level' in any case, with its current share price exceeding €29. SRC said that the exception might be Immofinanz, 'which might need fresh capital and might seek a block transaction to finance the recent S Immo entry'.


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