Shareholder changes at Immofinanz mean Austrian property rival S Immo SLAG.VI would be open to renewing merger talks once the coronavirus crisis is over, the chief executive of S Immo said on Thursday.
A tie-up between the two companies has been on and off for years as they look to create a stronger business and make savings. But they abandoned their latest talks in November after failing to agree on a share exchange ratio.
In February, however, an investment vehicle partly owned by Austrian investor Ronny Pecik bought 10.7% in Immofinanz from Vice-Chairman Rudolf Fries, who left the company in early March. Long-serving Chief Executive Oliver Schumy left shortly after.
Pecik and a partner hold around 14% in S Immo, and the two groups are already interlinked, with Immofinanz holding 29% in S Immo, and the smaller firm holding 12% in Immofinanz. Immofinanz also said on Monday it was open to talks.
“The company and the shareholder structure naturally offer options and these options must be examined in the interest of all shareholders,” S Immo chief executive Ernst Vejdovszky said on a conference call on Thursday, when asked about Immofinanz.
In the short term, however, he said it was more important to deal with the effects of the coronavirus outbreak.
Shop closures and home working in all its markets will hit the company hard this year, Vejdovszky said, adding S Immo aimed to find fair solutions for all its tenants.
“Right now we all have other things to do than chatting about a merger,” he said.
Both firms’ properties largely consist of offices and retail sites in Austria, Germany and eastern Europe. Immofinanz says its portfolio is worth around 4.5 billion euros ($4.9 billion), twice the size of its rival’s.
Activist investor Petrus Advisors, which holds under 5% in both companies, has said a combination could lead to annual synergies of 28 million euros and shareholders in both companies could be around 20% better off.
Analysts have long said consolidation among Austria’s three remaining listed property groups, which also include CA Immo, would make sense, as it would increase sales power and financial strength.
S Immo’s Vejdovszky said he currently saw no way of including CA Immo in any combination.
Source: Reuters.com