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RNS - Citycon to Raise EUR 400 Million in New Capital CPPIB to Become a Strategic Shareholder in Citycon

Company: Norstar Israel Ltd. Date: 2014-05-13 Language: English Register to download
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 News Details

Corporate | 13 May 2014 09:32

#   

Citycon to Raise EUR 400 Million in New Capital CPPIB to Become a Strategic Shareholder in Citycon

DGAP-News: Gazit-Globe /

13.05.2014 / 09:32

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TEL-AVIV, Israel, 2014-05-13 09:32 CEST (GLOBE NEWSWIRE) --
Gazit-Globe (NYSE:GZT) (TSX:GZT) (TASE:GZT), one of the world's leading
multi-national real estate companies focused on the acquisition, development
and redevelopment of supermarket-anchored shopping centers in major urban
markets, announced today that its Finnish subsidiary, Citycon Oyj ('CTY'), is
raising approximately EUR 400 million in new capital. Approximately 77.9
million shares (for an aggregate amount of approximately EUR 206 million at a
price of EUR 2.65 per share) will be issued in the form of a directed share
issuance to the CPP Investment Board European Holdings S.ar.l ('CPPIBEH'), a
wholly owned subsidiary of the Canada Pension Plan Investment Board, the
strategic investor that joint ventured with CTY in December 2012 to acquire
Kista Galleria in Stockholm, Sweden. 

The shares issued to CPPIBEH in the directed share issuance will represent
approximately 15% of CTY's outstanding share capital prior to the rights
issuance. Subsequent to the completion of the directed share issuance, a rights
issuance of up to approximately 74.2 million new shares will be offered to
CTY's shareholders at the same subscription price of EUR 2.65 per share,
raising an aggregate additional amount of approximately EUR 200 million for
CTY. 

Gazit-Globe and CPPIBEH, together with the Finnish pension fund Ilmarinen
Mutual Pension Insurance Company, have, subject to certain conditions,
undertaken to fully subscribe to their respective pro rata shares in the rights
issuance. In addition, Gazit-Globe and CPPIBEH have further committed, subject
to certain conditions, to back-stop additional amounts of the rights issuance
to the extent a portion remains unsubscribed after the primary phase is
completed. 

As part of the transaction, Gazit-Globe and CPPIBEH have entered into a
governance agreement that, among other things, commits each of the parties to
certain understanding with respect to the election of directors at shareholders
meetings and includes a tag-along right for CPPIBEH in the event of a sale of a
certain number of shares by Gazit-Globe, and obligates both parties to work
towards the application of best corporate governance practices at CTY. 

As of the date hereof, Gazit-Globe holds approximately 217.6 million shares of
CTY, constituting approximately 49.3% of its share capital and voting rights.
Following the directed share issuance, Gazit-Globe will hold approximately 42%
of CTY's share capital and voting rights, while after the rights issuance
(assuming the full exercise of its underwriting commitment), Gazit-Globe
holdings will rise to approximately 45%. 

The transaction remains subject to the authorization of CTY's shareholders who
will convene for an extraordinary general meeting in early June. 

Chaim Katzman, Chairman of Gazit-Globe and Citycon: 'This is a vote of
confidence in Citycon by CPPIB, which is one of the world's largest investment
funds with global real estate assets of over US$ 20 billion. The investment
signals CPPIB's recognition of the ability of Citycon's management to navigate
the long-term strategic growth of Nordic and Baltic shopping centers.' 

About Gazit-Globe

Gazit-Globe is one of the largest owners, developers and operators of
predominantly supermarket-anchored shopping centers in major urban markets
around the world. Gazit-Globe is listed on the New York Stock Exchange
(NYSE:GZT), the Toronto Stock Exchange (TSX:GZT) and the Tel Aviv Stock
Exchange (TASE:GZT) and is included in the TA-25 and Real-Estate 15 indices in
Israel. Gazit-Globe owns and operates 577 properties in more than 20 countries,
with a gross leasable area of approximately 6.6 million square meters and a
total value of more than US$ 22 billion. 

FOR ADDITIONAL INFORMATION

Investors Contact: ir@gazitgroup.com, Media Contact: press@gazitgroup.com

Gazit-Globe Headquarters, Tel-Aviv, Israel, Tel: +972 3 6948000 / New York,
Tel: +1 212 897 9741 

About CPPIB

Canada Pension Plan Investment Board (CPPIB) is a professional investment
management organization that invests the funds not needed by the Canada Pension
Plan (CPP) to pay current benefits on behalf of 18 million Canadian
contributors and beneficiaries. In order to build a diversified portfolio of
CPP assets, CPPIB invests in public equities, private equities, real estate,
infrastructure and fixed income instruments. At December 31, 2013, the CPP Fund
totalled C$ 201.5 billion. For more information about CPPIB, please visit
www.cppib.com. 

FORWARD LOOKING STATEMENTS

This release may contain forward-looking statements within the meaning of
applicable securities laws. In the United States, these statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements involve a number of known and unknown risks
and uncertainties, many of which are outside our control, that could cause our
future results, performance or achievements to differ significantly from the
results, performance or achievements expressed or implied by such
forward-looking statements. Important factors that could cause or contribute to
such differences include risks detailed in our public filings with the SEC and
the Canadian Securities Administrators. Except as required by applicable law,
we undertake no obligation to update any forward-looking or other statements
herein, whether as a result of new information, future events or otherwise. 


         CONTACT: For additional information:
         Gil Kotler,
         Senior Executive VP and CFO
         
         Gazit-Globe Ltd.
         1 HaShalom Rd.
         Tel Aviv, Israel 67892
         +972 3 694 8000
News Source: NASDAQ OMX


End of Corporate News

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13.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:    English       
Company:     Gazit-Globe   
 
 
             Israel        
ISIN:        PAL0605071A3  
 
 
End of News    DGAP News-Service  
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