Immofinanz and CA Immobilien merger

Overview:

• Austrian commercial property businesses Immofinanz and CA Immobilien (CA Immo) have agreed to merge and form the largest commercial property group in Central and Eastern Europe.
• The merger was announced in unlikely circumstances after the competing Vienna listed businesses had each attempted and failed to take over the other in 2015.
• Despite the acrimonious nature of the takeover bids, the first stage of the companies' integration was completed in 2016 when Immofinanz acquired O1 Group's 26% stake in CA Immo for €605 million.
• Immofinanz financed the deal through cash and capital market instruments. 
• The merger, which will create a business with €6 billion in real estate assets, is subject to a shareholder vote, where a minimum of 75% must be in favour of the deal for it to proceed.  
• In a statement, Immofinanz said the vote would take place in 2017.

Ben Naylor - Regional Editor