Growthpoint dismisses bid for Globalworth

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Growthpoint dismisses bid for Globalworth

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Published Date: 2021-04-28 | Source: Stephen Gunnion | Author: Stephen Gunnion

Growthpoint dismisses bid for Globalworth

The property group says it agrees with the assessment by an independent committee that the takeover offer is too low.

Growthpoint associate Globalworth has dismissed a €1.6-billion takeover offer from its largest shareholder as too low. And Growthpoint says it agrees.

Earlier this month, CPI Property Group and Aroundtown announced a firm intention to make a €7 per share to buy out minority shareholders in Globalworth. They already own a combined 51.5%. However, an independent committee of Globalworth's board said it "materially undervalues the company, its assets and its prospects".

Growthpoint owns a 29% stake in Globalworth, which is listed on London's AIM market and describes itself as a leading real estate company in Central and Eastern Europe with a focus on the region's two largest property markets, Poland and Romania.

In making the offer, CPI and Aroundtown said they would enhance Globalworth's positioning, both by increasing investment in existing assets and by expanding its portfolio.

Globalworth said the €7 per share offer represented a significant discount to its net asset value, which will be updated and published as part of the offer process. At the end of December, it sat at €8.68 per share. It also represented a discount of more than 27% to Globalworth's six-month volume weighted average price as of 21 February 2020, the last date prior to the start of the Covid-19 pandemic.

Growthpoint said its board of directors agreed with the assessment of value by the Globalworth Independent Committee.

Growthpoint's shares closed 0.4% up at R14.24 on Monday.





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