The shareholders of Cordia International Zrt. decided to increase the capital of the company by HUF 12 billion, according to a press release sent to the Budapest Business Journal.
The transaction will be carried out by issuing 7,741,040 new shares with the par value of HUF 1,000 each and granting rights to them at the issue price of HUF 1,615 each.
As a result, the companyʼs share capital will increase by HUF 7.4 billion to HUF 18 billion, while the excess of the share capital will increase the capital reserve of Cordia International Zrt.
The new shares were subscribed by the previous shareholders, and the full amount of the increase of the share capital will be paid within 30 days and the consideration paid in excess of the share capital will be paid in full by September 15 at the latest. The capital increase also increases the security of policyholders who have become investors in the company as part of the MNBʼs Growth Bond Program, since this capital is subordinate to the bonds issued, the company says.
Additionally, Cordia also announced entering the German rental housing market. The companyʼs board of directors approved the acquisition of 20.6% stake in ARGO Properties N.V for EUR 34.4 million by European Residential Investment Asset Management Ltd., fully owned by Cordia. ARGO currently owns properties in Berlin, Dresden, Leipzig and Magdeburg.
"With the significant increase in capital and the entry to the German rental housing market, Cordia owners have sent strong signals in a highly uncertain economic environment due to the COVID-19 epidemic that we not only have the resources for the further development of our company, but we will continue to expand," says Gábor Futó, founder and majority owner of Cordia.
"Entering the German market will allow us to diversify our operations and provides a predictable, long-term growth for our company by properties rented out with rental fees below the market average and by the low leverage," he adds.