Citycon’s board of directors unanimously recommends accepting the purchase offer

Real estate investor Citycon the board of directors unanimously recommends to the shareholders the acceptance of a cash consideration of EUR 2.90 per share.

G City made a mandatory tender offer for all shares of Citycon earlier in January. However, the share was below the 90 percent limit that the company would need to redeem the remaining Citycon shares from the minority owners.

The offer period for the new purchase offer started at the beginning of July and will continue until August 3, and the arrangement itself is expected to be implemented during the third quarter of the current year.

The offered price includes a premium of approximately seven percent relative to the share’s closing price before the offer was announced. G City already controls more than 86.5 percent of Citycon’s shares and votes, so the purchase offer targets the minority share that is still in circulation on the stock exchange.

Citycon’s board of directors considers the price offered to shareholders to be reasonable in the prevailing market situation. Behind the estimate is HLP Corporate Finance Oy:n fairness opinion statement.

In the background of the board’s recommendation, the share’s weakened liquidity on the stock exchange and the company’s financial position weigh in particular. The loss of the investment grade credit rating in 2025 has made it more difficult and expensive to access financing. According to the board, continuing as an independent listed company involves significant macroeconomic uncertainties, while the takeover offer gives the shareholders a safe exit option.

If G City’s shareholding exceeds the 90 percent limit as a result of the purchase offer, the company plans to start the mandatory redemption procedure for the remaining shares in accordance with the Limited Liability Companies Act and apply for the shares to be removed from the Nasdaq Helsinki stock exchange list.

According to the buyer’s view, Citycon’s long-term development potential is best realized outside the stock market in private ownership.

The arrangement is not expected to have an immediate impact on Citycon’s operational activities or real estate assets, although the buyer is currently exploring opportunities to enhance the group’s European operations.