By Jennifer Chiou
New York, April 8 - Orco Property Group SA announced that its board approved a €6.1 million private placement of shares on Tuesday.
According to a news release, the company placed the shares in the form of a reserved capital increase under its authorized capital to funds managed by AXA Investment Managers and Neptune Invest for 750,000 and 340,000 shares, respectively, at a price of €5.61 per share.
The per-share price represents a €1.51 premium, the company said.
Orco said that its share capital will increase to €49,338,850.60 made up of 12,033,866 shares.
On Wednesday, Orco's board of directors said the company's shareholders will meet on April 26 to vote on replacing the current board of directors with a new team to be chaired by Jean-Pierre Mattei.
As already reported, the meeting will include Millenius Investments SA, Clannathone Stern SA and Bugle Investments Ltd., which hold 10.9% of voting rights.
According to a prior news release, the board believes the shareholders' intention is "hostile" and was not preceded by any contract between management and shareholder representatives.
Given the current context, the board said it is surprised by such unfriendly and opportunistic process, which it believes is detrimental to the interests of Orco, its teams, its business partners and its shareholders.
The board already reiterated its full confidence in the company's management, which it said has put forward a comprehensive restructuring plan that should now be peacefully executed.
Orco Property Group is a Central European developer and asset management company based in Luxembourg.
| Issuer: | Orco Property Group SA
|
| Issue: | Common stock
|
| Amount: | €6.1 million
|
| Shares: | 1.09 million
|
| Price: | €5.61
|
| Warrants: | No
|
| Investors: | AXA Investment Managers (for 750,000 shares) and Neptune Invest (for 340,000 shares)
|
| Settlement date: | April 8
|
| Stock symbol: | EPA: ORC
|
| Stock price: | $7.55 at close April 8
|
| Market capitalization: | $82.56 million
|
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