DGAP-Adhoc

CPI PROPERTY GROUP improves the balance sheet through EUR 149 million contribution of bonds and loans in exchange for issue of 316,986,950 new shares

CPI PROPERTY GROUP / Key word(s): Capital Increase

18.12.2014 20:22

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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CPI PROPERTY GROUP improves the balance sheet through EUR 149 million
contribution of bonds and loans in exchange for issue of 316,986,950 new
shares.


Luxembourg, 18 December 2014. CPI PROPERTY GROUP (the "Company") announces
the issue of 316,986,950 new ordinary shares in debt-to-equity
contribution. The new shares having a par value of EUR 0.10 and a
subscription price EUR 0.47 each were issued today in a reserved capital
increase paid by a contribution in kind.

The new shares were subscribed by WHISLOW EQUITIES LTD, an entity owned by
Mr. Radovan Vitek. The aggregate subscription price of EUR 148,983,866.50
was paid today by transfer of bonds and receivables of the Company's
subsidiary CPI FINANCE NETHERLANDS B.V. ("CPIFN") valued at EUR
148,983,866.95. The Company will further capitalize these bonds and
receivables into its subsidiary Czech Property Investments, a.s., thereby
substantially improving consolidated balance sheet of the entire group.

The corporate share capital of the Company has been increased from EUR
298,678,135 represented by 2,986,781,350 shares to EUR 330,376,830
represented by 3,303,768,300 shares. The new shares are not listed upon
their issue, but the Company will seek to list them on the Frankfurt Stock
Exchange as soon as reasonably practicable, subject to legal and regulatory
requirements.

The total number of shares comprising the share capital of the Company as
well as the total number of voting rights attached thereto is 3,303,768,300
as of 18 December 2014.

The Company considers it very positive that by Mr. Vitek, as the main
shareholder of the Company, agreed to contribute his privately owned CPIFN
bonds and credit facilities in exchange for newly issued Company's shares.
It underlines his strong support and confidence in the future growth of the
Company. The contribution will increase the already substantial amount of
equity and lower the absolute and relative indebtedness of the Company. It
will have an effect of further improvement of Company's credit covenant on
the international capital markets and allow the Company to obtain fresh
equity or debt financing if and when needed.


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Information and Explaination of the Issuer to this News:


Contact:
Kirchhoff Consult AG
Sebastian Bucher
Herrengraben 1
D-20459 Hamburg

T [phone]
F [phone]
[e-mail]

18.12.2014 The DGAP 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: CPI PROPERTY GROUP
40, rue de la Vallée
L-2661 Luxembourg
Grand Duchy of Luxembourg
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.gsg-group.de
ISIN: LU0251710041
WKN: A0JL4D
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Düsseldorf, Stuttgart

End of Announcement DGAP News-Service

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