MONTREAL, Aug. 14, 2019 /PRNewswire/ - Letko, Brosseau & Associates Inc., an independent investment manager that exercises investment control or direction over approximately 2.4% of the outstanding shares of Atrium European Real Estate Limited ("ATRS" or the "Company") and is the Company's second largest shareholder, today reaffirms its intention to vote AGAINST the proposed going private transaction of ATRS by Gazit-Globe Ltd.
The proposed transaction price of 3.75 Euros per share significantly undervalues the Company's own stated Net Asset Value of 5.03 Euros per share.
ATRS is a leading owner and manager of high-quality shopping centers in some of the best urban locations in Central and Eastern Europe. To date, ATRS has been successful in selling assets at or above their book value, including two assets in Poland for 298 million Euros in the first half of 2019. As of December 31, 2018, ATRS reported Net Asset Value of 5.03 Euros per share before tax ("ERPA NAV") and 4.62 Euros per share after tax and other items ("ERPA NNNAV"). Additionally, ATRS is expected to benefit from an increase in rental income, declining interest rates, significant development and redevelopment opportunities as well as its land bank. Based on these factors, Letko Brosseau believes ATRS's stated Net Asset Value far exceeds the proposed transaction price.
Letko, Brosseau & Associates Inc. is a Canadian independent investment manager founded in 1987. As of July 31, 2019, the firm manages approximately $28 billion in assets for institutional investors and private clients. It has offices in Montreal, Toronto and Calgary.
Certain information contained in this press release may constitute forward-looking statements. Forward-looking statements may include estimates, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Letko Brosseau believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Letko Brosseau's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and Letko Brosseau does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.
SOURCE Letko, Brosseau & Associates Inc.