CPI Property Group continued to purchase Globalworth shares throughout the week. Following the recently executed transactions and an acquisition announced last week, CPI Property Group now holds 29.4% of the company’s voting rights.
On Monday (3 February), Ioannis Papalekas, the CEO of Globalworth has sold his indirect interest in the company to CPI Property Group through the sale of his holding company, Zakiono Enterprises Limited.
Mr Papalekas has informed the company that the consideration for the sale comprises €9.70 per Globalworth share (ex dividend), €7.3 million for the warrants, and €39 million for the remaining assets of Zakiono. In addition, given the timing of the sale, CPIPG will pay to Mr Papalekas €7.1 million in respect of the interim dividend of€0.30 per share that will be paid next week on the Globalworth shares held by Zakiono. Zakiono is the holder of 23,734,670 Globalworth shares and warrants over a further 2,830,020 Globalworth shares.
“We are pleased to have acquired Zakiono from Mr. Papalekas, which enabled CPIPG to build a more meaningful stake in Globalworth,” said Martin Nemecek, CEO of CPIPG. “As a major shareholder CPIPG intends to collaboratively support Globalworth’s future growth and operations.”
As a result of recent sales of Globalworth shares and the sale of Zakiono, Mr. Papalekas has now entirely sold his investments in Globalworth, a company he founded in 2013. Mr. Papalekas is expected to continue serving in senior leadership and advisory role for Globalworth in the near-to-medium term.
Following the acquisition of Zakiono, CPIPG also gained rights which allow CPIPG to appoint representatives to Globalworth’s board and board committees.
“CPIPG believes in the Globalworth team and sees many similarities in our operating strategies,” said David Greenbaum, CFO of CPIPG. “Our investment in Globalworth enhances CPIPG’s exposure to top-quality office assets in the CEE region and supports CPIPG’s strategic and capital structure objectives.”
On Monday, Globalworth also announced that Mr Dimitris Raptis, the Deputy Chief Executive Officer and a Director of the company has sold 508,792 Globalworth shares at a price of €9.70 per share. In addition, a pension trust of which Mr Raptis is the sole beneficiary, has sold 50,848 shares also at a price of €9.70 per share.
On Tuesday (4 February), CPIPG purchased 3,680,494 shares in Globalworth through a broker. As a result of these and earlier purchases, CPIPG now owns a total of 65,250,000 Globalworth shares (29.4% of voting rights) making CPIPG the largest shareholder in Globalworth by a small margin, but still below the mandatory takeover threshold of 30%. CPIPG reportedly does not intend to purchase more shares of Globalworth at this time.
“Globalworth is a superb company and CPIPG is proud to be a major shareholder and strategic investor,” said Martin Nemecek, CEO of CPIPG. “We share the strong belief that high-quality offices in major cities of the CEE region will continue to perform well.”
Last week, when CPI Property Group crossed the 6% shareholding threshold in Globalworth, the company said that it does not intend to make a takeover offer for Globalworth in the near-term.
