PARIS, April 5 /PRNewswire-FirstCall/ -- Orco Property Group, an
investor, developer and asset manager in the Central European property and
hotel markets, today announces that SG Corporate & Investment Banking (SG
CIB) is to arrange a Step-up Equity Subscription (PACEO) for up to 1 million
new shares, or 15.03% of the company's post-operation capital.
"Orco is the first property group to use a PACEO. This financial
instrument is well suited to our development plans and will allow us to seize
the multiple investment opportunities arising in Central Europe. The
flexibility offered by the PACEO means that the group can increase its
capital gradually as required and will create value for shareholders", said
Arnaud Bricout, Orco's Vice-President, Corporate Finance.
Orco has hired SG CIB, Societe Generale Group's corporate and investment
banking arm, to arrange the operation. As financial intermediary, SG CIB
undertakes to subscribe to up to a million new shares over 24 months. SG CIB
does not intend to remain a long-term shareholder of Orco and will dispose of
the shares on the market.
The PACEO will allow Orco to issue a maximum of 1 million new shares on
demand in one or more tranches, raising up to EUR 8 million of equity finance
with each share issue. The total amount of capital raised will depend on the
actual financing needs over the lifetime of the PACEO and will reflect the
share's market performance and volumes exchanged. All subscriptions for
shares by SG CIB will be at an issue price of 95% of the share price at the
time of execution.
This operation was arranged as part of Orco's renewal of authorised
capital, approved by shareholders at the General Meeting of April 29, 2004.
The prospectus for the PACEO has been filed with and approved by No. 05-201
the AMF.
* PACEO - Programme d'Augmentation de Capital par Exercices d'Options
(Step-up Equity Subscription)
SG CIB has already arranged and completed several operations of this type
in France, Spain and Italy.
The PACEO is a product, created by SG CIB in 2002, which offers companies
an additional optional source of finance. Its economic and financial impact
is the same as a capital increase, while offering the flexibility of a
confirmed credit line. The subscription price for shares at each share issue
reflects the current stock exchange price. The programme is only activated on
the issuer's request.
Orco Property Group
Orco Property Group has been active in Central Europe since 1991. It
rents and manages a diversified portfolio of office, residential properties,
luxury hotels and hotel apartments in prestige locations.
As a developer, investor and asset manager, Orco is now a major player in
the region's property and hotel markets.
Its portfolio is valued at EUR 250 million with restated NAV per share of
EUR 34.09 at December 31, 2004. Revenue in 2004 was close to EUR 72 million
(unaudited figures).
Orco has been listed on Eurolist Paris (code ORC) since 2000 and is one
of the most actively traded stocks in the segment, besides being the only
listed property company dealing exclusively in the Central European market.
Since February 1, 2005, Orco has also been listed on the Prague stock
market.
SG Corporate & Investment Banking
SG CIB is the corporate and investment banking arm of the Societe
Generale Group. Active in more than 45 countries in Europe, Asia and the
Americas, SG CIB is a market leader in three core business lines:
- Euro capital markets. One of the top ten financial institutions in the
debt and equity segments (bond issues, securitization, syndicated loans,
convertible debt and equities).
- Derivatives. A world leader in equity derivatives and interest rate,
credit, currency and commodity products.
- Structured finance. World leader in export, project and structured
commodities finance.
SG CIB combines innovation and high-quality execution to develop
integrated financial solutions that add value for large corporations,
financial institutions and investors. http://www.sgcib.com
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SOURCE Orco Property Group
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CONTACT:
Orco Property Group: Arnaud Bricout, Vice
President, Corporate Finance, Tel: +33-1-40-67-67-00,
abricout@orcogroup.com; Luc Leroi, Member of the Executive
Committee, Tel: +352-26-47-67-47, lleroi@orcogroup.com; Contacts
at SG Corporate & Investment Banking: Thierry du Boislouveau,
Head of Equity Corporate Finance, Tel: +33-1-42-13-30-66,
Thierry.du-boislouveau@sgcib.com
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