|Bid||29.53 x N/A|
|Ask||29.55 x N/A|
|Day's Range||29.00 - 29.63|
|52 Week Range||22.44 - 31.50|
|Beta (5Y Monthly)||1.22|
|PE Ratio (TTM)||8.93|
|Earnings Date||Feb 26, 2020|
|Forward Dividend & Yield||2.10 (7.27%)|
|1y Target Est||35.94|
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Aareal Bank AG and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
(Bloomberg) -- A second activist investor has built a position in Aareal Bank AG and plans to support a full sale of the German real estate lender’s software business.Petrus Advisers Ltd. owns just over 2% of Aareal Bank, the London-based investment firm’s founder, Klaus Umek, said by phone Tuesday.“We think the software unit should be sold -- there’s more potential in there,” Umek said.Aareal Bank is currently working on a sale of as much as 30% of its software and services division Aareon, people with knowledge of the matter said in July. After Bloomberg News reported the stake sale plans, activist hedge fund Teleios Capital Partners called on the bank to sell the entire business. Analysts have valued the unit at about 550 million euros ($599 milllion).German banks are streamlining businesses under pressure in an overcrowded market where lenders are grappling with negative interest rates. Selling the software division could help Aareal to deal with difficulties in its U.K. operations, where non-performing loans for shopping centers have been piling up.Shares of Aareal Bank have risen 2% this year, giving the company a market value of about 1.65 billion euros. A spokesman for Aareal Bank declined to comment.Activists have been stepping up pressure on European banks. Petrus said last week it has increased its holding in Commerzbank AG’s listed online subsidiary, Comdirect Bank AG, to just over 3%. Cevian Capital revealed a stake in Finland-based lender Nordea Bank Abp in December. Investor Edward Bramson’s Sherborne Investors Management LP became one of the biggest Barclays Plc shareholders last year and has slammed the new chairman’s strategy.\--With assistance from Scott Deveau.To contact the reporters on this story: Jan-Henrik Förster in London at email@example.com;Matthias Wabl in Vienna at firstname.lastname@example.orgTo contact the editors responsible for this story: Dinesh Nair at email@example.com, Ben Scent, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Activist hedge fund Teleios Capital Partners called on German lender Aareal Bank AG to look into selling its software unit.Teleios, which owns about 3.4% of commercial real estate lender Aareal, said the software unit Aareon is a very different business than its parent, and without separate ownership it’s “in danger of failing to achieve its full potential.” The hedge fund made its case to the Aareal board in a Sept. 26 letter seen by Bloomberg.Aareal shares rose as much as 4.9% on the news.The bank’s current preference to hold on to Aareon and potentially partner with a strategic minority investor isn’t in the interest of shareholders, Teleios said. The hedge fund estimates that Aareon’s standalone valuation could be as much as 60% of the market capitalization of Aareal. Teleios called for a strategic review.“It seems obvious to us that an innovative and fast-growing software business would benefit vastly from different leadership and oversight, incentive schedules, and corporate and risk cultures -- removed from a conservative and stagnating commercial real estate lender,” Teleios partner Adam Epstein wrote in the letter.‘Strategic Options’Aareal spokesman Christian Feldbruegge confirmed that the company received the letter from Teleios. “It is the management’s fundamental duty to continually review value-creating strategic options in the interests of all stakeholders,” he said.A representative of Teleios declined to comment.Teleios manages about $1 billion. Started in 2013, it focuses on European mid-cap companies. Activist investors take stakes in companies and agitate for changes to help boost share prices.German banks are streamlining businesses under pressure in an overcrowded market where lenders are grappling with low to negative interest rates and an economy showing signs of weakness. Selling Aareon could help Aareal to deal with weaknesses in its U.K. business where non-performing loans for shopping centers have been piling up.Aareal has “substantial exposure” to the U.K. commercial real estate market and could be “hit hard” by a no-deal Brexit, Moody’s Investors Service said in a report in March.In the letter, the hedge fund flagged its meeting with the bank earlier this month and said the board is aware of third parties interested in the software division.“It seems logical to us that the vast majority of these potential bidders would prefer to own Aareon outright, and be willing to pay a premium valuation for control,” Epstein wrote.(Updates with Aareal comment in sixth paragraph.)To contact the reporters on this story: Nishant Kumar in London at firstname.lastname@example.org;Stephan Kahl in Frankfurt at email@example.comTo contact the editors responsible for this story: Shelley Robinson at firstname.lastname@example.org, Patrick HenryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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