DGAP-Adhoc: CPI PROPERTY GROUP: Issue of 2.5 billion new shares in exchange for contribution of EUR 251.5 million bonds

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

21.04.2016 19:38

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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AD HOC RELEASE
Luxembourg, 21 April 2016

CPI PROPERTY GROUP: Issue of 2.5 billion new shares in exchange for
contribution of EUR 251.5 million bonds

CPI PROPERTY GROUP (the "Company") announces the issue of 2,514,691,202 new
ordinary shares in a debt-to-equity contribution. The new shares having a
par value and a subscription price of EUR 0.10 each were issued today in a
reserved capital increase under the Company's authorized share capital and
fully paid by contributions in kind.

The aggregate subscription price of EUR 251,469,120.20 was paid today by
transfer of bonds issued by the Company and the Company's subsidiary Czech
Property Investments, a.s. The contributed bonds were valued at their
nominal (face) value plus accrued interest as at 21 April 2016, amounting
in aggregate to EUR 251,469,120.20.

The corporate share capital of the Company has thus been increased from EUR
330,376,830 represented by 3,303,768,300 shares to EUR 581,845,950.20
represented by 5,818,459,502 shares. The new shares are not listed upon
their issue, but the Company will seek to list them on the Frankfurt Stock
Exchange, subject to legal and regulatory requirements. The total number of
shares comprising the share capital of the Company is therefore
5,818,459,502 as of 21 April 2016.

The new shares were subscribed by two entities owned by Mr. Radovan Vítek
(2,483,429,178 shares in aggregate) and certain other holders of bonds
(31,262,024 shares in aggregate), including some members of management and
senior advisors of the Company. The Company contemplates potential further
debt-to-equity contributions in order to further strengthen its
indebtedness and balance sheet of the entire group.

The Company further resolved in principle to increase the capital raising
goal of the Company, so that it could raise an additional EUR 330,376,830
and intends to give to its shareholders a possibility to participate at a
capital increase of the Company in cash at the issue price of EUR 0.10 for
each new shares to be issued, such issue price being equivalent to the one
that has been used in today's debt-to-equity contribution. This capital
increase would be realized by offering to all the shareholders of the
Company, who are shareholders as at 23:59 CET (end of day) on 20 April
2016, the possibility to subscribe for cash to additional shares in the
Company pro rata to their shareholding as at 23:59 CET (end of day) on 20
April 2016. This capital increase is conditional upon the approval by the
extraordinary general meeting of the Company's shareholders (the "2016
EGM") to be held at the time of its annual general meeting on 26 May 2016
in Luxembourg of a new authorized share capital of EUR 1,000,000,000 (one
billion Euro) of the Company to be used for, among other things, realizing
such capital increase, being understood however that this capital increase
is also subject to further legal and regulatory requirements, including the
prospectus approved by the CSSF.


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Information and Explanation of the Issuer to this News:

IMPORTANT:  UNDER NO CIRCUMSTANCES SHALL THIS NOTICE CONSTITUTE AN OFFER TO
SELL, OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE FOR
SECURITIES IN THE GRAND DUCHY OF LUXEMBOURG.

For further information please contact:

Kirchhoff Consult AG 
Andrew Stammler
Herrengraben 1
20459 Hamburg
T +49 40 60 91 86 34 
F +49 40 60 91 86 60 
E andrew.stammler@kirchhoff.de

21.04.2016 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:        +352 264 767 1
Fax:          +352 264 767 67
E-mail:       contact@cpipg.com
Internet:     www.cpipg.com
ISIN:         LU0251710041
WKN:          A0JL4D
Listed:       Regulated Market in Frankfurt (General Standard); Regulated
              Unofficial Market in Dusseldorf, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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