by Lars Winter, Euro on Sunday
The shopping center operator Deutsche Euroshop, actually a guarantor of stability and sustainable returns, has also made no progress in recent years. However, the company also had to contend with headwinds due to the lockdowns in the Corona crisis. Now the billionaire family has struck Otto and made a takeover bid with the help of the locust Oaktree. The investors are offering EUR 22.50 per share including the dividend and making it a condition that at least 50 percent of the shareholders accept the offer. This threshold is achievable. It remains questionable whether the major shareholder Otto, who already holds 20 percent of the shares, will also jump over the 75 percent mark, which is important under company law. For invested investors and newcomers, there is a good opportunity for a promising long-term investment.
If the offer goes through, the stock is probably hedged down. Upwards, on the other hand, there is a new fantasy. On the one hand, a major investor has decided to buy in the current environment – a good signal. On the other hand, the book value of Deutsche Euroshop is much higher than the takeover price. Analysts from Warburg Research valued the company’s tangible asset EPRA-NTA per share at more than 38 euros, around 70 percent above the offered price. In addition, Deutsche Euroshop has a solid balance sheet and financial foundation and has no significant refinancing risk. Buy!
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Image sources: xxx, Frankfurt Stock Exchange