The former telephone company made a surprising move

A real estate investment company that is leaving the stock exchange Citycon there has been a surprising move in ownership.

Converted from a telephone company to an investment group Founda namely rose of the real estate investment company listed on the Helsinki Stock Exchange in August Citycon became the third largest owner with a purchase of two million euros.

Citycon’s largest owner G City raised own From Citycon to more than 91 percent recently. G City is owned by the chairman of the board of Citycon, an Israeli Chaim Katzmanin a company that already made a purchase offer for the company in the summer.

“The purchase offer price was considered quite low compared to the value of Citycon’s real estate portfolio. And the offer didn’t go through right away, but now with the extended offer period, we reached more than 90 percent,” Vehviläinen said.

Next, Citycon faces the redemption procedure for the remaining shares.

“If there is any kind of disagreement about the redemption price, it will be resolved in the arbitration court. And I think there might be a disagreement,” Vehviläinen said.

According to Vehviläinen, it is difficult to predict the possible solution of the arbitration court. He brought up the recent one Ahlström-Munksjön the redemption price proceedings, which ended up in the Supreme Court. In the case, the price went up.

“However, there are no such features in Citycon, but some issues will definitely have to be addressed there. For example, the main owner’s rather strong use of power in the company before the purchase offer,” said Vehviläinen.

Finda’s motive

But let’s go back to the beginning. Why has Finda wanted to acquire a piece of Citycon at this point, which is largely owned by G City and facing exit from the stock exchange?

“It’s hard to see any logic here other than that Aurejärvi Finda, which is principally owned by the brothers, thinks that Citycon’s redemption price may increase in the arbitration court and they are then ready to fight for this, perhaps there as well”, Vehviläinen reflected and continued that Aurejärvi has not been reached so far despite the attempts of the editor.

“I don’t understand what other logic there could be in such a move,” Vehviläinen said.

The economic morning was hosted by a journalist Heidi Huotilainen.

You can watch Friday’s Economic Morning in its entirety below.