Topic: On Tuesday evening, IMMOFINANZ announced the cash compensation for the remaining minority shareholders of S IMMO at € 22.05 per share. The determination of the cash settlement amount has been based on a valuation report conducted by PwC. In addition, the correctness of the report will be examined by BDO Austria as the court-appointed expert auditor.

As mentioned in our previous update, the resolution on the squeeze-out is to be passed at an Extraordinary General Meeting of S IMMO, which has now been scheduled for 14 October. The valuation report is then also published one month before the meeting.  Afterward, the resolution will be entered into the commercial register, whereupon a two-months period for the cash settlement begins. At the same time, the Vienna Stock Exchange is seen to initiate the delisting of the shares, which we expect to happen already in the course of Q4.

In our view, the announced cash settlement amount has to be seen as a fair offer, as it reflects only an 11% discount to the company’s EPRA NTA of € 24.86 per share (as of H1 ’24). In fact, this compares to an average NTA discount of our conducted peer group (LEG, VNA, IIA, AT1, CAI, TEG, GYC) of 30%, which is also in accordance with S IMMO’s NTA discount of 29% the day prior to the announcement of the initiation of the squeeze-out process.

In accordance with the announced cash compensation and subject to the audit by BDO, we reduce our PT to € 22.05 (old: € 24.00) and further recommend the remaining shareholders to SELL.