Following the announcement in its half year results, Real Estate Investors plc has confirmed it is to buy back up to £2 million worth of the AIM-listed company’s shares.
In the half year statement, chief executive Paul Bassi said: “The board believes that an investment in REI’s ordinary shares at the prevailing price and discount to net asset value offers attractive value for its shareholders. If the discount to net asset value persists, then the board will consider using proceeds from selective sales to fund share buy backs as part of its overall capital allocation strategy.”
REI has now confirmed that the board has approved the terms of a share buyback programme to buy back the Company’s ordinary shares of 10 pence each with an aggregate market value of up to £2.0 million.
The programme, which will be funded from the company’s existing cash resources, is intended to reduce the share capital of the Company. will seek to make market purchases at a price or prices that the Company believes will be value-enhancing for shareholders.
REI has appointed Liberum Capital Limited to execute and manage the programme which is expected to end no later than 31 December 2020. A further announcement will be made if the programme is subsequently extended or increased in scale.
Mr Bassi said: “Given the discount to net asset value of the prevailing price of REI’s shares, this is an opportunity which offers exceptional value, and the decision has received the unanimous backing of the board.”
