Despite major divestments, the CPI Property Group has not managed to reduce its debt to the extent that rating agencies would return it to the investment grade, making its debts enormously more expensive. Due to increasing financial pressure, the owner is willing to consider buyout offers, according to six independent sources, reports e15.cz.
The owner, Radovan Vítek, has already met with potential buyers for this purpose. If the entire group were to be sold, it would be one of the largest transactions since the privatisation of the Czech economy. The company's current market capitalisation, according to the Frankfurt Stock Exchange, is €6.87 billion.
CPIPG left questions about the possible sale of assets without comment. "We will not comment on these speculations," wrote the group's spokesman, Jakub Velen. Due to the sensitivity of the information, no analyst wants to comment on them by name. In addition, the company is traded on the German stock exchange.
There is still a possibility that the Group will be able to be largely cleared of debts, and CPIPG's rating will be improved. According to e15, the agencies are to reassess it this fall. Last year, the rating agency S&P lowered CPIPG's credit rating by one notch to BB+. This means that the rating is now in the speculative range.
Due to the acquisition of the Austrian real estate groups Immofinanz and S Immo in 2021, the group is gradually selling one property after another in order to reduce its debt level. Although it managed to reduce its net debt by 11.4 per cent last year thanks to the sale of assets for €1.6 billion, it still has difficult years ahead. According to the annual report, it will have to repay liabilities of around €7 billion, by 2029. Net debt, or net LTV, remains high at around 50 per cent.
