DGAP-News: CPI PROPERTY GROUP
/ Key word(s): Capital Increase/Real Estate
CPI PROPERTY GROUP
Luxembourg, 22 November 2021
CPIPG and funds (the "Apollo Funds") managed by affiliates of Apollo Global Management, Inc. (together with its consolidated subsidiaries, "Apollo"), as a leading global real estate investor, entered into a subscription agreement for a total of €300 million relating to the issuance of 487,012,987 new ordinary shares of CPIPG priced at €0.616/share. Subject to the satisfaction of certain closing conditions, CPIPG expects the shares to be issued to Apollo before the end of 2021, resulting in a stake of about 5.5%.
The Group's majority shareholder and founder Radovan Vitek also subscribed to 243,506,494 new ordinary shares of CPIPG at €0.616/share, increasing the Group's equity by a further €150 million. Following this capital increase, Mr. Vitek owns 7,902,846,980 shares representing 93.90% of CPIPG's share capital (94.66% of voting rights). Mr. Vitek is not expected to subscribe for additional shares in 2021.
Once the issuance of new ordinary shares to the Apollo Funds is completed, CPIPG will have successfully raised €550 million of equity from Mr. Vitek and the Apollo Funds during H2 2021. Mr. Vitek will retain clear majority ownership of CPIPG with a stake of nearly 90% following Apollo's investment.
"Proceeds from the ordinary share issuances will be used for acquisitions and deleveraging," said David Greenbaum, CFO of CPI PROPERTY GROUP. "We see an opportunity to continue growing our portfolio while maintaining a conservative financial profile."
About Apollo Funds' Investment in CPIPG
The investment by the Apollo Funds diversifies and strengthens CPIPG's access to external sources of equity and underscores the company's commitment to corporate governance. Upon completion of the Apollo Funds' investment, real estate expert Tim Scoble will join CPIPG's Board of Directors, increasing the total number of directors to eight (four members of management, three independents, and one Apollo representative).
Financial Policy and Net LTV
CPIPG's financial policy is unchanged: the Group targets a net LTV of 40% or below, and temporarily up to 45% in the case of acquisitions with high strategic merit. Over time, the Group expects to preserve and eventually tighten our financial policy to achieve "high BBB" credit ratings.
Distributions will continue to be determined by the Board of Directors in light of CPIPG's financial profile and credit ratings. The Group places great value on reinvesting a substantial portion of FFO back into the business, which has been a hallmark of our successful growth.
Changes in Share Capital
For further information please contact:
For more on CPI Property Group, visit our website: www.cpipg.com
22.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||CPI PROPERTY GROUP|
|40, rue de la Vallée|
|Phone:||+352 264 767 1|
|Fax:||+352 264 767 67|
|Listed:||Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart|
|EQS News ID:||1251174|
|End of News||DGAP News Service|