Citycon buys its own shares directly from owners at a rapid pace – Maximum purchase of more than five percent of the total share capital

A real estate investment company focused on shopping centers Citycon intends to acquire a maximum of 9.5 million of its own shares from a limited number of the company ‘s existing shareholders through a reverse accelerated tender offer.

The purchase price will be determined on the basis of the tenders received in the tender procedure. The maximum number of shares corresponds to approximately 5.34 percent of all issued Citycon shares.

Citycon had previously announced on October 27, 2021 that it had investigated the possibility of repurchasing its own shares.

The main purpose of the share purchases is to distribute the additional proceeds from the divestment of the Columbus Shopping Center to Citycon’s shareholders.

The divestment was announced on October 27, 2021 and is expected to take place during the rest of the year. The shares will be repurchased pursuant to the authorization given by Citycon’s Annual General Meeting on March 22, 2021. Based on the authorization, the Board of Directors may decide to repurchase a maximum of 10,000,000 of the company’s own shares in one or more tranches.

The shares will be acquired with Citycon’s unrestricted equity and the acquisition will therefore reduce the company’s unrestricted equity and the acquisition will be recorded as a deduction from retained earnings. The acquisition price of the shares will be paid against delivery on the settlement date of the transactions.

Purchase finish by Thursday morning

The bidding process will begin immediately and is expected to end no later than tomorrow, November 25, 2021 at 9:00 AM. However, the tender procedure may be suspended at any time during the tender procedure.

According to the company, the reverse accelerated tender procedure enables the procurement to be carried out quickly and cost-effectively. Citycon intends to cancel the acquired shares.

The company’s Board of Directors will decide on the final number of shares to be acquired and the acquisition price at the end of the tender offer procedure. This information will be made public after the end of the tender procedure.

Major shareholder ownership rising above the 50 percent limit, still no tender offer obligation

Once the acquisition is completed, Citycon’s largest owner Gazit-Globen shareholdings and voting rights are expected to exceed 50 percent of all outstanding shares and votes in Citycon.

Under the Securities Markets Act, if the change in ownership is due solely to the Company’s actions, crossing the limit does not create an obligation to make a mandatory public tender offer until the cross-border Gazit-Globe acquires or subscribes for additional shares or otherwise increases voting rights in the company.

Source: Arvopaperi by

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