(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
LONDON (Reuters Breakingviews) – WORTH MORE. German property funds CPI Property and Aroundtown are attempting a cheeky raid on eastern European offices. The duo, which collectively own 51.5% of UK-listed Globalworth Real Estate Investments, offered on Wednesday to buy the remainder of the Poland- and Romania-focused group for just under 1.6 billion euros. At first glance, their 7 euro per share bid, a 19% premium to Globalworth’s undisturbed price, looks reasonable. Initial appearances, however, can be deceptive.
Like most property groups, Globalworth took a big hit from pandemic-induced homeworking. The worst of that should now be behind it. Yet the consortium’s bid is almost a quarter below Globalworth’s pre-pandemic share price. The stock was even trading around 7 euros in February, when it was offering a juicy forward dividend yield of nearly 9%. Wednesday’s jump in Globalworth shares to 7.32 euros, comfortably above the offer price, sends a clear message: minority investors think it’s worth more. (By Ed Cropley)
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