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HELSINKI May 13 Nordic commercial property
owner Citycon on Tuesday said it plans to raise about
400 million euros ($550 million) of new capital from a Canadian
pension fund and existing owners as it looks to step up shopping
About half of the issue is planned to be offered to CPP
Investment Board European Holdings (CPPIB), a Canadian pension
fund, while the other half is directed to existing shareholders,
Citycon said in a statement it would use part of the
proceeds to make a debt repayment to deleverage its balance
sheet and enable it to pursue acquisitions and development
projects in the Nordic and Baltic regions.
Following the issue, CPPIB would own about 15 percent of
Citycon's shares and votes, while the top owner, Israel's
Gazit-Globe, would have 42 percent and Finnish pension
fund Ilmarinen about 8 percent.
The price of the issue, 2.65 euros per share, is 2 percent
lower than the stock's closing price on Monday.
Citycon holds 36 shopping centres and 33 other retail
properties. In a 2012 acquisition it teamed up with CPPIB to buy
a shopping centre in Sweden for 530 million euros. ($1 = 0.7270
(Reporting By Jussi Rosendahl, editing by Terje Solsvik)