27th Apr 2021 09:15
(Alliance News) - Aroundtown SA and CPI Property Group SA's hopes of acquiring Globalworth Real Estate Investments Ltd were dealt a blow on Tuesday, after an investor in the London-listed firm said it would not back the takeover offer.
Oak Hill Advisors, which holds a 5.3% interest in Globalworth, said the joint-bid from Aroundtown and CPI "undervalues" the company.
Globalworth Real Estate, which last week formed an independent board committee to evaluate the EUR774 million offer, on Monday also said the bid undervalues it.
The offer price of EUR7.00 per share is 19% below the company's EPRA net asset value of EUR8.68 per share as of December 31, Globalworth noted on Monday.
Globalworth shares were untraded, last quoted at EUR7.40 each in London on Tuesday morning.
Oak Hill said on Tuesday: "Having considered the offer and taking into account the advice of the independent committee, OHA currently intends to take no action in respect of the offer given that OHA also believes that it undervalues the company."
CPI and Aroundtown are Frankfurt-listed real estate owners. Aroundtown's properties are mainly in Germany and the Netherlands, while CPI and Globalworth are focused on central and eastern Europe.
Aroundtown shares were down 1.3% at EUR6.25 early Tuesday, while CPI was unchanged at EUR0.72.
By Eric Cunha; [email protected]
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