Immoeast and Immofinanz likely to merge

The Viennese waltz between Immoeast and Immofinanz looks to be coming to a close as the two companies, already merged at the hip, are set to merge in January. The two companies own huge shares in each other anyway and seem to be taking advantage of the relatively calm financial waters to do a deal not everyone thinks is a great idea. Immoeast has been performing far better this year than last, with saying it had net income of €63.3m for the three months ending October 31. A bit better than the €1.47bn loss of a year before. If its share price dropped yesterday on the news of the proposed merger, maybe it’s because Immofinanz debts exceed its assets by €750m. For the record, as Bloomberg points out, Immofinanz owns 54.4% of Immoeast.

Immoeast shareholders would get 54.4% of the new, merged company. If anyone has some insight as to what the real attraction for Immoeast is, or the potential pitfalls, we’re all ears.

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