Peach Property Group AG: The Company resolves on fully underwritten capital increase with subscription rights

[ Report ]

Zürich (pta026/20.11.2024/18:45) - Ad hoc announcement pursuant to Art. 53 LR

* Major shareholders support the Capital Increase

* Significant strengthening of the capital structure and Group liquidity

Today, the Board of Directors of Peach Property Group AG ("Peach Property Group" or the "Company") resolved on the implementation of an ordinary capital increase against cash contribution with subscription rights and subscription rights trading based on the resolution approved by the Company's extraordinary general meeting on September 27, 2024. The Company's registered share capital shall be increased by CHF 22,729,450 by issuing 22,729,450 registered new shares with a nominal value of CHF 1.00 (the "New Shares"), representing 100 percent of the Company's existing issued share capital (the "Capital Increase"). The New Shares will be entitled to dividends, if any are declared, for the financial year ending December 31, 2024, and for all subsequent years.

The New Shares will be offered to all existing shareholders holding shares after close of trading on SIX Swiss Exchange on November 28, 2024, by way of a subscription right at a ratio of 1-to-1 (i.e. current shareholders of the Company are entitled to subscribe for one New Share for every existing share held) at an offer price of CHF 5.00 (the "Offer Price").

The subscription period is scheduled to begin on November 29, 2024, and is scheduled to end on December 09, 2024, 12:00 noon CET (both dates inclusive) (the "Rights Exercise Period"). The subscription rights to the New Shares shall be listed and tradable on SIX Swiss Exchange between November 29 and December 05, 2024 (both dates inclusive) (the "Rights Trading Period"). Delivery and first day of trading of the New Shares is scheduled to be December 12, 2024. Zürcher Kantonalbank is acting as Transaction Manager in the context of the Capital Increase.

The offer of the New Shares is fully backed by irrevocable undertakings by the four major shareholders who will exercise their subscription rights in relation to in total 12,379,664 of the New Shares and by two of the four major shareholders, H21 Macro Limited ("H21") and ZMEX Corporation, who additionally provide a backstop for all of the New Shares which have not been successfully placed during the Rights Exercise Period.

By submission dated November 08, 2024, the Company filed a request with the Swiss Takeover Board to grant H21 an exception from the duty to make an offer pursuant to Art. 135 para. 1 FinMIA in connection with its backstop commitment. The Swiss Takeover Board has granted the requested exemption in its decision dated November 18, 2024. Please find the text (English and French) of the decision of the Swiss Takeover Board at the end of this Ad hoc announcement.

Peach Property Group will generate gross proceeds of more than CHF 113m from the Capital Increase, which is approximately EUR 120m, and intends to use the net proceeds from the Capital Increase to strengthen its capital structure and liquidity and to reduce its indebtedness in view of upcoming maturities, capital expenditures on its portfolio as well as general corporate purposes.

Gerald Klinck, CEO of Peach Property Group, comments: "Just a few days following the announcement of the successful portfolio sale of approximately 5,200 units, we are pleased today to announce taking another important milestone in the Group's financial development which is an integral part of our plan to stabilize the Company financially and prepare for addressing all upcoming refinancing needs. We truly appreciate the strong support of our shareholder base which allows us to maximize transaction certainty of the Capital Increase. In combination with the portfolio sale, we expect to receive cash proceeds of approximately EUR 235m after transaction costs. This enables us to significantly improve our strategic position and balance sheet structure. In addition, both transactions reflect the significantly improved access to the capital markets that Peach Property Group has been able to achieve in recent months."

Contacts:
Media, investors and analysts
Gerald Klinck, Chief Executive Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
Rosenberg Strategic Communications GmbH & Co. KG
Dirk T. Schmitt, Managing Partner
+49 170 302 8833 | D.Schmitt@RosenbergSC.com

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Decision of the Swiss Takeover Board

In its decision of 18 November 2024 (to be published on http://www.takeover.ch ), the Swiss Takeover Board has decreed the following.

«1. H21 Macro Limited and Rainer-Marc Frey are granted an exemption in accordance with Art. 136 para. 1 lit. c FinMIA from the duty to make a public takeover offer pursuant to Art. 135 para. 1 FinMIA in connection with the capital increase of Peach Property Group AG as described in this decision for a period of six months from the date on which the threshold value subject to the duty to make an offer is exceeded. This exemption from the duty to make an offer is granted on the condition that H21 Macro Limited and Rainer-Marc Frey do not exert any substantial influence on the fortunes of Peach Property Group AG during the period in which the threshold is exceeded.

2. H21 Macro Limited and Rainer-Marc Frey are additionally obliged to inform the Swiss Takeover Board within five trading days of exceeding or falling below the threshold of 33 per cent of the share capital and voting rights in Peach Property Group AG.

3. Peach Property Group AG is obliged to publish the dispositive of the present decision as well as the reference to the right of objection of qualified shareholders pursuant to Art. 6 and 7 TOO.

4. This decision will be published on the website of the Takeover Board on the day of the publication of Peach Property Group AG pursuant to dispositive no. 3 above.

5. If this decision is not published, the dispositive items 1 and 2 will only have legal effect in connection with the capital increase described in this decision.

6. The fee charged to Peach Property Group AG amounts to CHF 35,000.»

Objection (Art. 58 of the Takeover Ordinance, SR 954.195.1):

A shareholder who can prove that he holds at least three per cent of the voting rights in the target company, whether exercisable or not (qualified shareholder, Art. 56 TOO), and who has not previously participated in the proceedings, may file an objection against the present decision. The objection must be submitted to the Takeover Board within five trading days from the date of the publication of this decision. It must contain an application and a summary statement of reasons as well as proof of the qualified participation in accordance with Art. 56 para. 3 and 4 TOO (Art. 58 para. 3 TOO).

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Décision de la Commission des OPA

Dans sa décision du 18 novembre 2024 (pour publication sur http://www.takeover.ch ), la Commission des OPA a décidé ce qui suit:

«1. En relation avec l'augmentation de capital décrite dans la présente décision, une dérogation à l'obligation de présenter une offre selon l'art. 135 al. 1 LIMF est accordée à H21 Macro Limited et Rainer-Marc Frey pour une durée de six mois à compter du dépassement du seuil de l'obligation de présenter une offre, conformément à l'art. 136 al. 1 let. c LIMF. Cette dérogation à l'obligation de présenter une offre est accordée à la condition que H21 Macro Limited et Rainer-Marc Frey n'exercent pas d'influence notable sur le destin de Peach Property Group AG pendant la période de dépassement du seuil.

2. H21 Macro Limited et Rainer-Marc Frey sont tenus d'informer la Commission des OPA dans les cinq jours de bourse du franchissement à la hausse ou à la baisse du seuil de 33% du capital-actions et des droits de vote de Peach Property Group AG.

3. Peach Property Group AG est tenu de publier le dispositif de la présente décision ainsi que la mention du droit d'opposition des actionnaires qualifiés conformément aux articles 6 et 7 de l'OOPA.

4. La présente décision sera publiée sur le site internet de la Commission des OPA le jour de la publication de Peach Property Group AG conformément au ch. 3 du dispositif ci-dessus.

5. Si la présente décision n'est pas publiée, les chiffres 1 et 2 du dispositif ne déploient d'effets juridiques qu'en relation avec l'augmentation de capital décrite dans la présente décision.

6. L'émolument à la charge de Peach Property Group AG s'élève à CHF 35'000.»

Opposition (art. 58 de l'ordonnance sur les OPA) :

Un actionnaire qui prouve détenir une participation d'au moins trois pour cent des droits de vote, exerçables ou non, de la société visée (actionnaire qualifié, art. 56 OOPA) et qui n'a pas encore participé à la procédure peut former opposition contre la présente décision. L'opposition doit être déposée auprès de la Commission des OPA dans les cinq jours de bourse suivant la publication de la présente décision. Elle doit contenir une requête et une motivation sommaire ainsi que la preuve de la participation selon l'art. 56 al. 3 et 4 OOPA (art. 58 al. 3 OOPA).

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About Peach Property Group AG

Peach Property Group is a property investor focused on residential investment in Germany. The group stands for many years of experience, expertise and quality. Innovative solutions for tenants' needs, strong partnerships and a broad value chain complete the profile, while digitalization and sustainability characterize the operational business. The portfolio consists of high-yield properties, typically in German Tier II cities in the catchment areas of major metropolitan areas. Activities therefore cover the entire value chain, from site evaluation and acquisition to active asset management and the letting or sale of properties. In addition, the Group is developing selected properties in Switzerland for sale as condominiums, the latest of which is the "Peninsula Wädenswil" project.

Peach Property Group AG is headquartered in Zurich and has its German headquarters in Cologne. Peach Property Group AG is listed on the SIX Swiss Exchange (PEAN, ISIN CH0118530366). The Board of Directors includes Michael Zahn (Chairman), Cyrill Schneuwly, Beat Frischknecht, Urs Meister and Eric Assimakopoulos.

Further information: https://www.peachproperty.com/en/

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