CPIPG and funds managed by affiliates of Apollo Global Management, Inc. 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 new ordinary shares of CPIPG, increasing the Group’s equity by a further €150 million. Following this capital increase, Mr. Vitek owns 93.90 % of the share capital (94.66% of voting rights) of CPIPG.
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 its 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.