DGAP-Adhoc: CPI PROPERTY GROUP - Capital increase

CPI PROPERTY GROUP
(société anonyme)
40, rue de la Vallée
L-2661 Luxembourg
R.C.S. Luxembourg: B 102 254

Ad hoc disclosure of inside information according to Article 17 of the EU Market Abuse Regulation

Luxembourg, 22 November 2021

CPI PROPERTY GROUP - Capital increase

CPI PROPERTY GROUP ("CPIPG" or the "Group") issues this announcement in relation to the issuance of 487,012,987 new ordinary shares of CPIPG priced at €0.616/share. CPIPG and funds (the "Apollo Funds") managed by affiliates of Apollo Global Management, Inc. (together with its consolidated subsidiaries, "Apollo") have agreed upon Apollo's subscription for new shares for a total amount of €300 million. Subject to the satisfaction of certain closing conditions, CPIPG expects that the new shares will be issued to the Apollo Funds before the end of 2021, resulting in a stake of about 5.5%.

The Group's majority shareholder and founder Radovan Vitek also subscribed to 243,506,494 new ordinary shares of CPIPG at €0.616/share, increasing the Group's equity by a further €150 million. Following this capital increase,
Mr. Vitek owns 7,902,846,980 CPIPG's shares representing 93.90 % of share capital (94.66% of voting rights). CPIPG's share capital was increased today from €817,239,581.70 to €841,590,231.10, represented by 8,415,902,311 ordinary shares.

Proceeds from the ordinary share issuances will be used for acquisitions and deleveraging, consistent with CPIPG's strategy to grow our portfolio while maintaining a conservative financial profile.

CPIPG has not paid dividends in the past. To accommodate Apollo as a new equity investor and further regularize the Group's equity shareholder distributions, CPIPG will increase our FFO I distribution target from 50% to 65% beginning in 2022. Distributions are expected to be made via share buy-backs offered to shareholders annually.

Notifying Person:

David Greenbaum
Chief Financial Officer
[email protected]