Business
Holding in Catena AB
Holding in Catena AB.
About this update from Cls Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 6935O CLS Holdings PLC 24 September 2013 \n\n \nRelease date: 24 September 2013\nEmbargoed until: 07:00\n \n \n \n \n \nCLS Holdings plc \n(\"CLS\", the \"Company\" or the \"Group\")\nHolding in Catena AB\n \nCLS notes that at yesterday's Extraordinary General Meeting (\"EGM\") of Catena AB (\"Catena\"), a company listed on the Stockholm Stock Exchange and in which the Group currently owns 29.99% of the issued share capital, a resolution was passed to issue new shares in payment for an acquisition. \n \nThe Group considers that the acquisition by Catena for SEK 1.145 billion (approximately £112 million) of a portfolio of 43 logistics and warehouse properties with a total lettable area of 655,000 sq m is in Catena's best interests, as it will provide risk diversification from Catena's current sole development at Haga Norra, Stockholm, increase its capital base and strengthen the platform for its long-term success. The transaction is classed as a reverse takeover in accordance with Swedish Company Law and the rules of the Stockholm Stock Exchange.\n \nFollowing the issuance of the new shares, the Group's holding in Catena will be reduced to 13.8%. In accordance with IFRS, Catena will cease to be an associate of CLS and will be accounted for as an available-for-sale investment. Consequently, CLS will account for dividends received from Catena, and will revalue its investment to fair value at each balance sheet date by reference to Catena's share price. At yesterday's closing price of Catena's shares, such a revaluation would increase the Group's pro forma net assets by £14.9 million, equating to 35 pence per share.\n \nSten Mortstedt, Executive Chairman of CLS Holdings plc, commented:\n \n\"This transaction is very good news for shareholders of Catena and of CLS as it enables Catena to move forward to maximise the development opportunity at Haga Norra, Stockholm, with a reduced investment risk profile. The 23% rise in the Catena share price following the announcement of the acquisition is evidence of the market's positive view on the transaction.\"\n \n \n-ends-\n...