DGAP-News Grand City Properties S.A. announces result of public tender offer to buy back own shares
DGAP-News: Grand City Properties S.A. / Key word(s): Share Buyback/Real Estate
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS
GRAND CITY PROPERTIES S.A. ANNOUNCES RESULT OF PUBLIC TENDER OFFER TO BUY BACK OWN SHARES
Luxembourg, February 17, 2021 - Grand City Properties S.A. (the "Company") hereby announces the result of the public tender offer for the acquisition of own shares announced on 28 January 2021 within the purchase price range of €20.00 to €21.25 per share. Until expiry of the acceptance period on 12 February 2021, 24:00 CET, 3,370,708 shares of the Company have been validly tendered into the offer. In accordance to the tender offer document and based on the number of shares tendered into the offer, the final purchase price for all shares validly tendered is €21.25 per share. The settlement of the tender offer is expected on 23 February 2021.
The Company sees the reinvestment into its shares as a strongly accretive investment, which provides a high and stable return on a per share basis in addition to acquisitions. The share buyback has been launched on the back of GCP's strong operational performance and increasing EPRA NAV per share, while the share is being traded at a discount to EPRA NAV. Furthermore, the Company's recent disposals at a premium to book value, while the share is traded at a discount highlights the disconnection between the value of the underlying business and the capital markets. Therefore, the Company has decided to use the opportunity to create further long-term shareholder value and accretive per share growth through the buyback of its shares at discount. The share buyback is supported by the robust equity base and the high liquidity of the Company and is in-line with GCP's conservative financial policy.