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Berlin IV: We say “Danke”!


We have decided to close our position in Berlin IV, following last week’s announcement that Immeo Danish Holding Ltd., an indirect subsidiary of Foncière des Régions SA, has filed a voluntary public offer to the shareholders in Berlin IV at a price of DKK 4.99. 

Berlin IV is the second of our top-picks which will/has been bought out over the recent months, following Chinese mobile gaming developer and publisher CMGE. 

We see a low likelihood that there will be a higher bid, primarily due to the fact that Foncière des Regions SA controls already of 25.27% of the votes and has a binding commitment of another 44.4% of the votes, bringing the total percentage of votes under control to 69.67%. 

(Shareholders in Berlin IV, including chairman Erik Stannow (Stannow Invest ApS), Board Member Ole E. Mortensen (IEI Portfolio A / S) and CEO Søren Krarup (SK Berlin Invest ApS, Astheo Holding ApS), who together represent 42.1% of the share capital and 44.4% of the vote, have given a binding undertaking to accept the offer from Immeo Danish Holding ApS.)

Based on the latest published annual report, corresponds to a valuation of the properties of almost EUR 1,800 per square meter. The offer represents a premium of 43% (adjusted for dividends for the financial year 2014/2015) compared to the closing price of B shares on NASDAQ Copenhagen on Oct. 7, 2015, when Berlin IV stated that it has received an unsolicited approach with a non-binding interest in acquiring a controlling stake in Berlin IV.

The Berlin IV share is currently trading at DKK 4.84, i.e. 3% below the takeover price. For investors with low risk tolerance we think it makes sense to keep their position and realise those 3% upside as well. For our own portfolio, we see bigger upside elsewhere.

Nordic Investor


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