The board of directors of Cofinimmo, a real estate company, rejected a takeover bid from Aedifica, deeming it too low, they announced on Friday through a press release.
While Cofinimmo acknowledged the "strategic logic" behind this unsolicited offer, the board believes that Aedifica's proposal undervalues Cofinimmo and its future prospects, presenting significant execution risks.
The Board specifically criticised the exchange ratio offered, stating it does not adequately reflect the quality and value of Cofinimmo's portfolio or its cash generation profile.
In early May, Aedifica proposed an exchange offer for all voting shares of Cofinimmo at 1.16 new shares per Cofinimmo share, implying a price of 80.91 euros per share, representing a 20.8% premium over Cofinimmo’s share price before suspension.
Both companies belong to the Bel20 index on the Brussels Stock Exchange and focus on healthcare real estate. In recent years, Cofinimmo has shifted its portfolio away from office real estate to focus 85% on healthcare properties. A merger would have created a group with assets worth 12.1 billion euros and a market capitalisation exceeding 5.8 billion euros.
Cofinimmo stated that both companies are key players in healthcare real estate with similarly sized portfolios. Any strategic alignment requires a balanced approach, preserving cash flow for both groups' shareholders and ensuring fair distribution of synergies. The structure should also facilitate proper integration and governance.
The Cofinimmo board announced it would explore other options to maximise value for shareholders.
