Varia US Properties announces capital increase – cash dividend of CHF 2.10 proposed

Varia US Properties AG today invited its shareholders to an extraordinary general meeting. The Board of Directors is requesting an ordinary capital increase for the exploitation of promising investment opportunities and the further enhancement of the portfolio in the USA. The Board also proposes to resolve a cash dividend in the amount of CHF 2.10 per share from the reserves from capital contributions.

Varia owns more than 8,000 units in 18 different States acquired in the last two years. The Company plans to continue on this growth path and developed a strong pipeline of promising opportunities in its target markets. In a strong American economy, Varia intends to use this positive momentum and to acquire additional attractive properties focusing on secondary and tertiary markets in growing suburban regions in the US.
Therefore, Varia’s Board of Directors has proposed an ordinary capital increase at which up to 1,800,203 new shares shall be issued and which shall be underwritten by Bank Vontobel. This means an increase of the number of shares from currently 7,200,815 shares to a new maximum of 9,001,018 shares. For this purpose, the Company is inviting shareholders to attend an extraordinary general meeting on 8 December 2017. The extraordinary shareholders meeting will decide on the final number of new shares to be issued. It is planned that Varia will publish further information about the rights offering on or around 8 December 2017.

Distribution of a cash dividend proposed

In addition, the Board of Directors proposes to its shareholders to resolve a cash dividend in the amount of CHF 2.10 per share from the reserves from capital contributions. Based on the total number of shares issued of 7,200,815, this distribution will be equivalent to a reduction in the reserves from capital contributions of CHF 15,121,711.50. The Board of Directors will determine the due date of the dividends. It considers a pay out of the dividend prior to the implementation of the ordinary capital increase.

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