Centro Properties Group shareholders have moved to protect the value of their investments in the company following the earlier announcement of a debt stabilisation agreement, establishing the Centro Shareholder’s Association (CSA), which has become a substantial holder in Centro.
The founding members of CSA have agreed to cast the same votes on certain proposals and resolutions put forward by Centro. The CSA’s voting powers may increase if more Centro shareholders join the group and cast a united vote on the proposals and resolutions.
The founders of the CSA moved to establish the association after realising the “enormous negative value impact on their investments following the debt agreement”, according to a statement released to the Australian Securities Exchange.
The structure and constitution of the CSA are yet to be finalised.
Centro negotiated a three-year extension on its almost $4 billion senior syndicated debt facility on January 16. Centro’s lenders gave the company a one-month extension of its December 15 deadline to allow time for refinancing.
