CENTRO Retail Australia shares began trading yesterday after Centro Properties Group shareholders and lenders agreed to wipe out $2.9 billion of debt, allowing the creation of the new entity.
Centro Retail shares closed at $1.74, valuing the 1.34 billion of quoted securities at $2.3 billion. The benchmark S&P/ASX 200 Index rose 0.8 per cent.
Centro first announced a planned restructuring in 2009 after a debt-fuelled US buying spree backfired with the global financial crisis.
Share and debt holders of Centro Properties and listed unit Centro Retail Trust approved a proposal last month to give lenders control of the new Centro Retail Australia trust in exchange for forgiving debt.
The reorganisation has been approved by the New South Wales Supreme Court.