IRSA Propiedades Comerciales S.A. (NASDAQ: IRCP; BYMA: IRCP) released a material fact regarding the proposal of a merger with IRSA Inversiones y Representaciones S.A, approved by its Board of Directors

Rhea-AI Summary

IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP) has initiated a corporate reorganization involving a merger with IRSA Inversiones y Representaciones SA. Approved by the Board of Directors, the merger will see IRSA absorbing IRSA PC, with the exchange ratio set at 1.40 IRSA shares for each IRSA PC share. Consolidated financial statements as of June 30, 2021, have been approved. The merger is pending shareholder approval and SEC clearance, with an effective date of July 1, 2021.

Positive

• Merger may enhance operational synergies and market presence.
• Exchange ratio of 1.40 IRSA shares per IRSA PC share could provide value to shareholders.

Negative

• Merger subject to shareholder and SEC approvals, introducing uncertainty.
• Possible integration challenges following the merger process.

BUENOS AIRES, Argentina, Sept. 30, 2021 /PRNewswire/ -- IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP, ByMA:IRCP), Argentina's leading Commercial Real Estate company, informs that as of this date the Company's Board of Directors has approved the beginning of the corporate reorganization process in the terms of article 82 and sbqs. of the General Law of Companies No. 19,550, the Income Tax Law No. 20,628, amendments, and regulations, CNV's Rules and the Listing Regulations of BYMA, by which IRSA Inversiones y Representaciones SA ("IRSA"), acting as the absorbing company, will merge by absorption with IRSA PC, as the absorbed company. In this regard, the Board of Directors has approved: (i) the individual and special merger financial statements as of June 30, 2021; (ii) the consolidated and special merger financial statements as of June 30, 2021; (iii) the subscription of the Prior Merger Agreement between both companies and (iv) establish the effective date of reorganization on July 1, 2021.

The merger is subject to the approval of the shareholders' meeting of both companies, which will be held once both companies have the administrative approval of the United States Securities and Exchange Commission, an entity to which they are subject because both companies' shares are listed in markets that operate in said jurisdiction.

Likewise, and within the framework of the reorganization process, the Board of Directors has approved the exchange ratio, which has been established at 1.40 IRSA shares for each IRSA PC share, which is equivalent to 0.56 IRSA GDS for each ADS of IRSA PC.

Contact:
+ 5411 4323-7449
ir@irsacp.com.ar  
https://www.irsacp.com.ar/home-inversores.php?lng=en  
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SOURCE IRSA Propiedades Comerciales S.A.

FAQ

What is the significance of the merger between IRSA and IRSA Propiedades Comerciales?

The merger aims to enhance operational efficiency and market presence for IRSA Propiedades Comerciales.

What is the exchange ratio for the merger involving IRSA Propiedades Comerciales (IRCP)?

The exchange ratio is set at 1.40 IRSA shares for each IRSA PC share.

When will the merger between IRSA and IRSA Propiedades Comerciales take effect?

The merger is expected to take effect on July 1, 2021, pending necessary approvals.

What approvals are needed for the merger between IRSA and IRSA Propiedades Comerciales?

The merger requires approval from the shareholders of both companies and the United States Securities and Exchange Commission.

What are the potential benefits of the merger for IRCP shareholders?

Shareholders may benefit from enhanced synergies and a stronger market position post-merger.