Real Estate Ina Invest and Cham Group examine merger

The two real estate companies Ina Invest and Cham Group are negotiating a merger. However, the talks are still at an early stage, according to a press release issued by the two companies on Monday.

The merger is to take place as a "merger of equals". The boards of directors of the two companies have signed a letter of intent to this effect, according to the statement.

Ina Invest's portfolio had a market value of CHF 836 million at the end of 2023. The total value of Cham Group's real estate portfolio amounted to CHF 444 million, although numerous buildings are still under construction.

Major shareholders support talks

The merger talks are also supported by major shareholders of both companies. Ina-Invest's major shareholder Implenia welcomed the talks in a separate press release. Implenia holds around 40 percent of the shares in Ina Invest.

Cham Group and Ina Invest major shareholder Philipp Buhofer also gave a positive assessment of the merger talks to the news agency AWP. "The clarifications and discussions will now show whether this will also be the case for all shareholders," he continued. According to the 2023 annual report, Buhofer holds almost half of the shares in Cham Group and just under 16% in Ina Invest via Buru Holding.

Buhofer is also Chairman of the Board of Directors of Cham Group. Buru Holding also holds a stake of just under 14 percent in Implenia. It only acquired this at the beginning of the year.

Exploiting synergies

With the merger, the companies want to achieve a portfolio size that brings greater economies of scale and synergies. According to the information provided, the merger would also offer advantages in terms of flexibility in project realization and financing options.

The properties of the two companies are primarily located in the Basel, Cham, Geneva, Lausanne, Winterthur and Zurich regions. After completion of the current construction projects, the combined portfolio of the two companies would have a residential share of over 50 percent.

Vote planned at AGMs in spring 2025

The companies intend to provide information on the progress of the talks in due course. If the negotiations lead to a positive outcome, shareholders will probably be able to vote on the merger at the Annual General Meetings in spring 2025, according to the statement.

Following the merger, the shares of the combined company will be listed on the SIX Swiss Exchange. Cham Group was delisted at the end of 2019 and its shares have only been traded over the counter since then.

SDA