ADO Properties: Heads for worst day ever on offer for Adler

Adler Real Estate AG

16/12/2019 08:37

(Recasts, updates shares and milestones, adds analyst comment)
    ** Shares in ADO Properties  ADJ.DE  slide around 10%,
heading for their worst day since the company's IPO in 2015,
after the company makes a takeover offer for Adler Real Estate
 ADLG.DE 
    ** ADO is offering 0.4164 new ADO shares for each share in
Adler, which is equivalent to 14.55 euros per share or a 17%
premium at Friday's closing price
    ** In addition to the offer for Adler, ADO Properties has
acquired a 22.18% stake in Consus Real Estate  CC11.DE  and
signed a call option for a 51% holding in the real estate
developer
    ** Jefferies says it sees limited deal rationale for ADO
Properties, adding most of the company's shareholders invested
for its Berlin pure play
    ** Adler's shares are up around 6% and Consus soars 13.8%
    ** "While the envisaged synergies are not overly exciting,
in our view, they look fairly substantial when Consus is
integrated into the group," Berenberg says, downgrading Adler to
"hold" from "buy" due to limited remaining upside 
    ** The broker adds that after all three companies have had a
fairly poor share performance this year so far, markets might
take a fresh look following the completion of the merger and the
realisation of synergies

    

 ((bartosz.dabrowski@tr.com))