CENCOSUD S.A. Parque Arauco, Cencosud and Central Store S.A., as successor to Comercial ECCSA S.A. ("Ripley") are equal part shareholders in the Corporation, which is the owner of the Marina Arauco Mall and Boulevard Marina Arauco shopping centers in the city of Viña del Mar in Chile, and of the Curico Mall shopping center in the same city.
According to the signed instrument between Parque Arauco and Cencosud (the "Accepted Offer"), Parque Arauco has agreed to buy Cencosud its stake in the Corporation. Because of an agreement with existing shareholders, since the moment the Company formally communicates the Accepted Offer to Ripley, the latter will have 30 calendar days to decide whether to fully or partially exercise the option to purchase up to a sixth of the shares of Marina Arauco, in the same terms agreed in the accepted offer. Then, Parque Arauco will acquire all shares of the Company owned by Cencosud that are not acquired by Ripley in the exercise of its preferential right.
Thus, at the close of the transaction, depending on the exercise of the option described above, Parque Arauco will buy from Cencosud between one sixth and one third of the shares of the Company. If the purchase by Parque Arauco turned out to be a third, total price will be UF 4,275,000, payable in cash. If the purchase by Parque Arauco is for a lower percentage, the price will decrease proportionately for Parque Arauco and Ripley would
have to acquire the shares of the Corporation up to the amount it has exercised under its option, and would have to pay Cencosud the equivalent value.
In any case, Cencosud will sell the totality of its shares in the Corporation and will thus receive the amount of UF 4,275,000, which will generate an extraordinary gain in the first quarter of 2016 for an estimated amount of CLP 54,295 million.
With this agreement, Parque Arauco S.A. will own at least 50% and maximum to two thirds of the Company, which owns Mall Marina Arauco and Boulevard Marina Arauco in Viña del Mar in Chile, and the Mall Curico shopping center in the city of the same name.
The Company had consolidated revenues of CLP 26,863 million in 2015, EBITDA of CLP 22,381 million and profit of CLP 24,876 million. Gross leasable area is approximately 115,000 sqm.
The closing of the transaction is scheduled for the fifteenth calendar day following the end of the referred option period, or the next business day if it falls on a Saturday or holiday.
Contact information:
Renato Fernandez Baeza Sarah Inmon
Corporate Affairs Manager Head of Investor Relations
Cencosud Parque Arauco
renato.fernandez@cencosud.cl sinmon@parauco.com
(56 2) 29590905 (56 2) 2299 0608
Cencosud SA issued this content on 10 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 22 March 2016 11:03:45 UTC
Original Document: http://investors.cencosud.com/files/doc_news/EN/2016/Venta-Participación-Inmobiliaria-Mall-Viña-del-Mar-(ENG).pdf
