According to a statement published by (38,5 CZK, -1,26%) Property Group, the group has started the voluntary exchange of bonds issued by Property Group and Germany into “New notes”. A total of € 75.2m of new bonds will be issued in exchange for the old bonds, at the request of the bondholders. This comes after the mandatory conversion of the rest of the bonds into 64.5m new shares.
According to an interview published by Bloomberg, the CEO of Property Group, Mr. Jean Francois Ott has stated that he is interested in buying additional shares in the company and increasing his stake. Mr. Ott
stated that some bondholders have to sell shares because they are bond funds which cannot hold shares. According to Bloomberg, Ott & Co holds 0.25% in the company.
Our view:
We view the news as neutral. The share was down 12% yesterday before the comment from Mr. Ott but then rebounded and closed flat.