Gazit Globe launches renewed takeover bid for Atrium

Atrium European Real Estate has confirmed that majority shareholder Gazit Globe has launched a fresh takeover bid for the retail-focused European real estate firm. 

The company's board of directors said that Tel Aviv-headquartered Gazit, which currently holds 75% of the firm, has communicated plans to offer €3.35 per share for the outstanding 25% stake in Atrium.

Atrium's board said it would relay its position once the offer was formally received.

The offer constitutes a 14% premium to Atrium's closing price on 30 July, and an 18% discount to the 30 June EPRA NTA of €4.10 per share.

Gazit also revealed its intention to turn Atrium into a wholly owned privately held company of Gazit, with a subsequent delisting from the stock exchange.

Smaller shareholders
The announcement represents a moment of déjà vu for Atrium's smaller shareholders, who successfully rebelled against a takeover attempt by Gazit in 2019.

Leading the rebellion against the offer was fund manager, Icamap. Managing director Harm Meijer blasted Gazit’s offer in a letter, vowing not to approve the offer he branded ‘unfair’ and ‘unacceptable’ and urging fellow shareholders to do likewise.

Shareholders subsequently voted 62.6% against a cash bid of €3.75 per share, claiming that the true share value was closer to €5.

New bid
in the light of the new bid, ratings agency Moody's said it had placed the ratings of Atrium on review for downgrade, saying that Gazit 'appears to have a weaker financial position compared to Atrium'.

Atrium, initially a shopping centre specialist with a CEE focus, has spent the last two years building a multifamily residential platform, and recently said it would channel funds into residential over the next three to four years.

However, its honed shopping centre portfolio also comprises prime, retail destinations across major cities including Warsaw and Prague.


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