The Board of Directors of Citycon Oyj has resolved in its meeting of 26 July 2005, in accordance with the authorization of the Annual General Meeting of Citycon of 5 April 2005, to increase the company's share capital by 16,200,000 and by issuing 12,000,000 new shares in a share offering to selected Finnish and international institutional investors. The purpose of the share offering is to finance partly the acquisition of Rocca al Mare shopping center in Tallinn, Estonia executed on 21 July 2005.
The decision of the Board to increase the share capital is based on the bids that have been received between 25 July 2005 and 26 July 2005 in a bookbuilding process. The lead manager will inform the investors who have submitted their bids of the amount of new shares they have been allocated with.
The subscription period will commence on 27 July 2005 at 11.00 A.M. (Finnish time) and end on 1 August 2005 at 11.00 A.M. (Finnish time). The shares will be subscribed for by paying the subscription price. The Board of Directors of the Company decided that the subscription price per share is 3.01 taking into account the bids made and the market price of the share during a period of 30 days prior to the announcement of the preparations for the offering. The terms and conditions of the share offering are enclosed to this release.
The new shares will correspond to approximately 10.6% of the company's share capital and voting rights prior to the share offering and approximately 9.6% after the offering provided the share offering is fully subscribed for. Bids received in the offering constitute an oversubscription of approximately 1.7 times the maximum number of shares offered. Bids for the offered shares have been made by 29 investors. 99% of the offered shares will be allocated to international investors and 1% to Finnish investors.
After having received payment for the shares, the Board will make a decision with respect to the approval of the subscriptions. A confirmation of the approved subscriptions will be sent to the investors on or about 27 July 2005 by the lead manager. Trading in the offered shares on the main list of the Helsinki Stock Exchange is expected to commence on or about 3 August 2005.
After the publication of the interim report on 20 July 2005 there have not been any events except for the acquisition of Rocca al Mare shopping center having a material effect on the position of the company.
The lead manager of the share offering is the Amsterdam based Dutch investment bank Kempen & Co.