JSE-listed real estate investment trust Growthpoint's board has not accepted the offer by Aroundtown SA and CPI Property Group for Central and Eastern Europe real estate company Globalworth, in which Growthpoint holds a 29.4% stake.
The Growthpoint board agreed with the independent committee of the Globalworth board, which concluded that the offer significantly undervalues Globalworth, its assets and its prospects.
In an April 14 announcement, Growthpoint said the Aroundtown SA and CPI Property Group consortium holds more than 50% of the issued share capital of Globalworth and is seeking to further increase its joint ownership through an offer to other Globalworth shareholders to acquire their shares at a price of €7 in cash for each tendered Globalworth share.