by
Bettina Schragl
15.06.2018

Q&A related to our reverse stock split

The annual general meeting of IMMOFINANZ AG on 11 May 2018 approved a reverse stock split at a ratio of 10:1, which means ten existing shares will be combined into a single share. This 10:1 reverse stock split will reduce the number of share from the previous level of 1,120,852,699 to 112,085,269. For your information, following are several questions and answers on this subject:
Q: What does a “reverse split“ mean for me as a shareholder?

A:
A reverse stock split is the opposite of a stock split. It reduces the number of issued shares – which, for IMMOFINANZ, total more than one billion and amount to significantly more than comparable companies. The market price of the individual share will increase in line with the combination ratio; the share will become “heavier”. However, the total value of the shares in each shareholder’s depository will remain unchanged.
The new number of shares will equal roughly 112.1 million. That generally reflects the level of CA Immo (approx. 98.9 million shares) and BUWOG (124.2 million shares).

Q: What is the amount of the individual share in total share capital?

A:
In connection with the reverse stock split, the annual general meeting approved a capital increase from internal funds (capital adjustment) and an ordinary capital decrease. The proportional share of share capital will again equal EUR 1 per share after the capital adjustment, decrease and reverse stock split take effect.

Q: What is the timetable, when will I see the reduced number of shares in my depository?

A:
From a legal standpoint, the number of shares will be reduced when the related resolution by the annual general meeting is recorded in the company register. This is expected to take place on Saturday, 23 June 2018. The conversion of the listing on the Vienna Stock Exchange will presumably take place on Monday, 25 June 2018. The share will then have a new International Securities Identification Number, ISIN AT0000A21KS2 (instead of the previous ISIN AT0000809058). The recording of the combined shares with the new ISIN in exchange for derecognition of the previous shares is expected to take place from a technical standpoint on Wednesday, 27 June 2018.

Q: Am I required to take any steps as a shareholder?

A:
No, the ISIN in shareholders‘ depositories will be converted automatically; no actions on the part of shareholders are required.

Q: Does the reverse split have any effect on stock market trading in IMMOFINANZ shares?

A:
On the Vienna Stock Exchange, IMMOFINANZ shares will be available for trading on all trading days. However, it is noted that – depending on the date on which the combined shares are recorded by the respective shareholder’s depository bank – the sale of IMMOFINANZ shares on 25 and 26 June 2018 may not be possible. Share purchases are not involved and can also be carried out on 25 and 26 June 2018. The listing on the Warsaw Stock Exchange will presumably be converted on Thursday, 28 June 2018 – and trading in IMMOFINANZ shares on the Warsaw Stock Exchange will be suspended from 22 June 2018 to 27 June 2018 (including both dates).

Q: I have less than 10 shares or a number of shares that cannot be evenly divided by 10. What happens now?

A:
The reverse stock split can create partial share rights, so-called “fractions“. These share fractions will be sold over the stock exchange, and the proceeds will be credited to the respective shareholders in cash, presumably at the beginning or middle of July.

Q: The current dividend guidance for 2018 is eight cents per share (i.e. EUR 0.08). Will the reverse split change this?

A
: In accordance with the above-mentioned ratio of 10:1, the guidance after the reverse split will equal 80 cents per share (i.e. EUR 0.80).

Q: What costs will I have in connection with the reverse split?

A:
The reverse split should be free of charge for shareholders who hold IMMOFINANZ shares in a depository in Austria. We have asked the banks to follow this request. Certain fees could be charged for shareholders who hold IMMOFINANZ shares in a depository in another country.