July 25, 2014 / 10:03 AM / 3 years ago

Czech developer Vitek launches mandatory buyout offer for GSG Group

PRAGUE, July 25 (Reuters) - Czech billionaire property developer Radovan Vitek has launched a mandatory buyout offer for shares in German real estate group GSG, the company said.

Vitek holds 94 percent of GSG after folding his own real estate group into the company this year and is offering to buy remaining shares at a price of 0.53 per share.

The offer runs through Aug. 21 and was launched through Vitek’s firm Materali, GSG said in a filing late on Thursday.

GSG shares were trading up 0.8 percent at 0.523 euros in Frankfurt on Friday.

The company, renamed from Orco Germany this year, is a former unit of Orco Property Group , of which Vitek is the biggest shareholder with a 30.7 percent stake.

Orco has been hard hit by a drop in the real estate market in central Europe since the 2008 global economic crisis and posted a record loss due to write-offs in 2013.

To raise cash, Orco has sold shares in the profitable GSG, which concentrates mainly on the Berlin property market. Orco remains the group’s second biggest shareholder with a 2.8 percent stake. (Reporting by Jason Hovet; Editing by Tom Heneghan)

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