Citycon acquires Norwegian Sektor Gruppen for approximately EUR 1.5 billion


    25 May 2015

    Citycon acquires Sektor Gruppen, Norway’s second largest shopping centre owner and manager – consolidating Citycon as the largest listed shopping centre specialist in the Nordics by gross asset value (GAV) and the third largest listed continental European operator. With the EUR 1.47 billion acquisition, Citycon gains exposure throughout the entire Nordic region, while increasing its GAV by nearly 50%, from EUR 3.4 billion to EUR 4.9 billion.

    Transaction highlights

    • Strengthened Nordic position through enlarged footprint and geographical diversification. Following the transaction, Citycon will own 55 shopping centres in the Nordic countries and Estonia and increase its total annual footfall from approximately 150 million to over 200 million
    • Excellent strategic fit – portfolio of quality urban grocery-anchored shopping centres in locations with strong demographics
    • Immediate critical mass in Norway – one of the fastest growing and wealthiest economies in Europe
    • Established Norwegian management platform joining Citycon: ability to focus on value creation from day one
    • Net initial property yield of approximately 5.2% with material organic growth potential. Expected to be accretive to earnings per share as of 2016
    • Upside potential through operational and financial synergies
    • Strong financial profile with target Loan to Value (LTV) level of 40-45% maintained
    • Material increase in number of shares together with larger asset base improves market visibility and financing options


    Citycon has issued a stock exchange release on the transaction and its financing earlier today. Citycon intends to finance the acquisition through a rights issue of approximately EUR 600 million to the existing shareholders of Citycon. Citycon’s two largest shareholders, Gazit-Globe and Canada Pension Plan Investment Board, are supportive of the transaction and have, subject to certain customary conditions, committed to pro-rata undertakings in the Rights Issue. The Rights Issue is subject to the extraordinary general meeting of Citycon authorizing the Board of Directors to decide on the issuance of new shares. Further information about the EGM and the registration form can be found here: Extraordinary General Meeting 2015   (in  English) and
    Ylimääräinen yhtiökokous 2015 (in Finnish).

    Investor webcast
    Citycon CEO, Marcel Kokkeel, and CFO, Exec. VP Eero Sihvonen, hosted a live audiocasting and conference call for investors and analysts on May 26, 2015 at 09:00 CET to discuss the transaction. A replay of the investor audiocasting and slide show:


    Press conference
    A press conference was held in Oslo with the Chairmen and CEOs of both companies on May 26, 2015 at 10:30 CET at the Thief Hotel, Landgangen 1, 0252 Oslo. A replay of the press conference webcast is available below in English and in Norwegian.

    Press conference webcast in English (live translation):


    Press conference webcast in Norwegian:
    http://publisher.qbrick.com/Embed.aspx?mcid=958DF5A89936E37E

    Media and investor enquiries
    Henrica Ginström
    Vice President, Investor Relations and Communications
    henrica.ginstrom(at)citycon.com
    Tel. +358 50 554 4296


    Downloads
    Investor Presentation
    Media Presentation
    Stock Exchange Release
    Stock Exchange Release in Finnish
    Press Release 
    Press Release in Finnish

    Photos for media

    Chairmen and CEOs of both companies in Oslo Kolbotn Torg, Greater Oslo region Trekanten Senter, Greater Oslo region
         
     
    Chairmen and CEOs of both companies in Oslo Linderud Senter, Greater Oslo region Herkules, Eastern Norway region 


    You can find more photos as well as download the photos from Image Bank, please choose 'Acquisition of Sektor Gruppen' under Category.