Citi Property Investors (CPI) and Gazit Globe Limited (Gazit) have reached agreement with Atrium European Land to swap their convertible bonds and options in the company in exchange for increasing their controlling stake in the CEE shopping centre specialist.
Citi Property Investors (CPI) and Gazit Globe Limited (Gazit) have reached agreement with Atrium European Land to swap their convertible bonds and options in the company in exchange for increasing their controlling stake in the CEE shopping centre specialist.
The proposals - which have to be voted on by all Atrium shareholders - would result in Gazit's stake in Atrium rising to just over 29%, while CPI's stake would jump to almost 20%. Gazit currently has a 12.5% stake in the share capital of Vienna and Amsterdam-listed Atrrium and just under 19% of the voting rights. CPI holds 3.3% of capital and almost 11% of the voting rights.
Under the proposal, the two majority shareholders would receive almost 145 million new ordinary shares of Atrium and about EUR 9.3 mln for the convertible securities and warrants they hold.
Atrium's board said the deal would save millions in interest payments on the convertible bonds and reduce Atrium's average borrowing rate of interest from 7.62% to 5.65%.
Rachel Lavine, CEO of Atrium, commented: 'We expect the proposals to put us in a strong position to take advantage of acquisition opportunities by utilising our cash and/or by raising debt which is both cheaper and less restrictive. We believe it is a further clear demonstration of how we are creating a solid platform for future growth.'
