(Bloomberg) -- Petrus Advisers Ltd., an activist investor that built up a stake in Austrian landlord Immofinanz AG, is pushing to hold talks about “strategic alternatives” for the company with its main shareholder.
Petrus founder Klaus Umek, who spoke with reporters on Monday, said negotiations should begin with CPI Property Group SA. Potential options may include a spin-off, asset sales or reorganization, he said. The stock, which currently trades at €22.25, may be worth as much as €31 by next year, according to Umek.
CPI Property Group, owned by Czech billionaire Radovan Vitek, has been streamlining its holdings, including in Immofinanz and its other listed Austrian unit S Immo AG. Petrus and CPI have a track record of cooperation in Immofinanz.
Immofinanz shares initially jumped on Monday morning, gaining as much as 8.5%. But the rally quickly reversed with the stock trading 4.9% lower as of 3:56 p.m. in Vienna.
CPI’s Chief Executive Officer David Greenbaum said in an email to Bloomberg News on Monday that his firm’s relationship with Petrus is “constructive.” There are many options for Immofinanz under consideration, and the company remains committed to reducing leverage and corporate complexity, he added.
Umek said Petrus has used recent declines in Immofinanz shares to build a 11.5% stake. The stock price has dropped nearly 30% in September. In July, CPI said it was considering options to further integrate Immofinanz, in which it holds a 75% stake.
The activist’s proposal is the latest in a decades-long saga surrounding Viennese landlords. Vitek’s CPI Property bought majority stakes in Immofinanz and S Immo in 2022, and has been assessing options to combine its holdings.
In 2022, Petrus sold a 6.8% stake in Immofinanz to CPI, helping its efforts to carve out a majority holding. Last year it bought a 1.9% stake in Immofinanz from CPI to help boost its liquidity.
(Recasts with new details and share price, from the first paragraph.)
©2024 Bloomberg L.P.
