Prime Office AG (DE000PRME020) – Strange rights issue

I have linked to the “special situation” stock Prime Office already in the past. The story in short:

Oaktree has effectively taken over a struggling German Office Reit by contributing a portfolio of office assets of their own. They then changed the status from REIT to “normal” company. In order to reduce the debt level, they started a rights issue a few days ago.

However this rights issue has a strange twist: Although the subscription rights are already traded (ISIN DE000PRME1B7), they did not publish the subscription price of the new shares yet.

Just as a reminder, let’s look how the value of a subscription right is calculated (from Stockopedia)

The calculated value of a subscription right. The theoretical value of a right during the cum rights period – which is the interval after the announcement of the rights offering but before the stock trades on an ex-rights basis – is calculated by the formula:

(Stock Price – Rights subscription price per share) / # of rights required to buy one share + 1

What we do know is that there will be 8 new shares for 23 old shares, that they are offering (up to) 46.58829 mn shares and that they want to raise 130 mn EUR. So one could calculate a theoretical subsrciption price of (130/46.59) = 2.70 and a value of the subscription right at the time of writing of (2.81-2.70)/(23/8+1)= 0.0283 EUR which is silghly lower than the traded prcie of 0.031 EUR per right.

But what I am asking myself is the following: Why did they do this in such a strange way ? Why didn’t they fix the price in the beginning as in very rights issue I have seen up to now ? I have no idea but I will watch that one closely.

6 comments

  • “Prime Office hat den Bezugspreis für die neuen Aktien im Rahmen der Barkapitalerhöhung auf €2,80 je Aktie festgelegt.”
    Quelle Boersego.de

  • Would you know where one could find Prime Office’s financials and an english version of their rights issue prospectus?
    Nothing is up on their site (probably because they’ll put the proforma financials when the merger is completed) and this situation has a lot of holes in it!

  • Zu Prime Office war übrigens glaube ich ein Artikel im Schwarzbuch Börse von der SdK.

  • Prime Office war schon immer etwas seltsam.
    Als sie 2011 im zweiten Anlauf an die Börse gingen, kamen sie für 6,20 statt der zuvor anvisierten 7,00 bis 9,50 € und fielen anschließend schneller als ihr NAV. Hermuth war damals Vorstandsvorsitzender sowohl von Prime Office als auch von DCM. Die DCM-Gruppe hatte im Juni 2007 (bemerkenswerter Zeitpunkt) die merch zweihundertundachtzigste Vermögensverwaltungs AG übernommen und diese später in Prime Office umbenannt. Zehn DCM-Immobilien wurden ebenfalls an P. O. veräußert, wofür die DCM-Fonds Prime-Office-Aktien erhielten. Auch damals also: “Zweimal Minus gibt einmal Plus”, wie heute mit Oaktree. Der 2011er IPO trotz bevorstehender Leerstandsprobleme ist schon bezeichnend.

    Da auch Cramm in jenen Jahren an Bord war, würde ich nicht plötzlich investorenfreunliches Geschäftsgebahren setzen.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s