PRAGUE, Oct 20 (Reuters) - The largest shareholder of Czech developer ECM Real Estate Investments ECMPsp.PR said on Monday it would launch a 303 crown per share voluntary offer for the company.
ECM Group, controlled by founder Milan Janku and a 30 percent shareholder, said it was making the offer to help focus the company on its long-term targets in the face of volatile markets and tighter financing.
“Therefore (ECM Group) considers its bid for takeover as the best solution for the current volatile situation on the financial markets both for the target company and for the stability of its business and financing, as well as for shareholders,” ECM Group said in a statement.
ECM shares closed 0.2 percent up at 296 crowns on Monday, valuing the group at $71.7 million.
The developer debuted on the Prague stock exchange in December 2006, but its shares have been knocked back this year, losing 75.4 percent of their value since January, as developers start to feel the pinch of the global credit squeeze. (Reporting by Jason Hovet; Editing by David Cowell)