Centro starts trading anew

Centro Retail Australia, the new entity to emerge from the amalgamation of assets and managed funds from the Centro Property Group, has gotten off to a solid start in its first day of trading on the ASX.

The share price closing at $1.74, valuing the company at $2.3 billion, and the share price opened at $1.70.

The new stock bearing the code ‘CRF’ hit a high of $1.825 in earlier trading, with 3.7 million shares changing hands during the course of the day.

It received the green light to commence trading following a four year battle to find a way out of financing problems dating back to the GFC after former auditor PricewaterhouseCoopers decided not to appeal a NSW Supreme Court decision in favour of the restructuring plan.

This followed major shareholders and bond holders agreeing to the restructuring of the company and the formation of the new retail fund on November 22 guaranteeing them a pay out of around 5¢ per share.

As part of the restructure, the $2.7 billion owed to Centro’s senior lenders that was due to be paid by December 15 will be cancelled in exchange for substantially all of Centro’s Australian assets and interests being transferred to these lenders.