Real estate investor: Patrizia before leaving the SDax – shares are rising

Munich. Company founder Wolfgang Egger wants to significantly increase the size of the Augsburg real estate and infrastructure investor Patrizia. Eggers First Capital Partner GmbH wants to increase its share from the current 58.9 percent to 73 percent and is offering the remaining shareholders 8.20 euros each for their shares, Patrizia and First Capital announced on Thursday.

They did not give a reason for the move. However, Patrizia's shares have been in a downward trend for years. They have fallen by more than three quarters from a high of 26 euros in 2020. Egger's offer is 30 percent higher than the closing price of Patrizia's shares on Wednesday and values ​​the company at around 760 million euros. First Capital would have to invest a good 100 million euros for the increase.

The Patrizia share then jumped by more than 20 percent to 7.59 euros. As part of the increase, Patrizia is to move from the Prime Standard to the less strictly regulated “Scale” over-the-counter segment of the Frankfurt Stock Exchange a good 20 years after its IPO. This would mean that the company would also have to leave the SDax small-cap index.

Patrizia became known nationally in 2013 with the €2.45 ​​billion takeover of the housing company GBW (now Dawonia) from the Bayerische Landesbank. In recent years, Patrizia expanded its business activities from real estate to infrastructure investments and expanded abroad. The company now manages around 55 billion euros.

First Capital's share is ultimately expected to rise to more than 75 percent. Patrizia's management around former DWS boss Asoka Wöhrmann has announced that it will withdraw 4.7 million of its own shares, 5.1 percent of the share capital, following the offer. However, there should not be a profit transfer and control agreement in the next three years, which would be possible with a 75 percent majority at the general meeting.