Joint Stock Company Open Investments (“JSC OPIN” or “the Company”), a real estate development, management and investment group based in Moscow, Russia, today announced that it has completed the previously announced plan of arrangement with Viceroy Homes Limited (“Viceroy”). Pursuant to the plan of arrangement, JSC OPIN has acquired, through its wholly-owned subsidiary Growth Technologies (Russia) Limited (“Growth Technologies”), all of the outstanding Class A Subordinate Voting Shares (“SVS”) of Viceroy for an aggregate purchase price of approximately Cdn$33.7 million.
The SVS acquired by Growth Technologies represent approximately a 61% equity interest in Viceroy. In connection with the arrangement JSC OPIN and Growth Technologies have entered into a shareholders’ agreement with the holders of all the outstanding Class B Multiple Voting Shares of Viceroy.
Sergey Bachin, General Director of JSC OPIN, commented:
“Development of middle-class residential housing remains one of the most important elements of our investment strategy. Development of this particular market segment has great potential, confirmed by significant unsatisfied demand. According to different sources demand for middle-class housing is met only for 15-30%. Cooperation with Viceroy will give us a quick access to the timber-frame technology and will allow us to will also allow us to pioneer the brand new quality housing product on the out-of-town residential market”.
“This is an important milestone for Viceroy” said Gaylord Lindal, President and Chief Executive Officer of Viceroy, who founded the company more than 50 years ago, “we look forward to working together with OPIN and are confident that OPIN shares the commitment we have to our customers and to building a strong future for Viceroy Homes.”