Hansteen prices £580m share buyback

By Kasmira Jefford - Wednesday, October 04, 2017 13:51

Hansteen is to buy back up to £580m of shares by way of a tender offer priced at 140p per share, the company announced today.

The property investor, which first revealed the tender offer in August,  pledged earlier this year to return to shareholders a substantial proportion of the proceeds from its €1.28bn sale of its German and Dutch Portfolio, which completed in June.  

Giving further reasons for the buyback, Hansteen said demand for industrial property meant that opportunities to reinvest cash sales proceeds at appropriate prices are scarce while current substantial cash deposits earn virtually no return.

Ian Watson and Morgan Jones, joint chief executives of Hansteen, said: “Today, Hansteen is delivering on its commitment to return approximately £580m to shareholders, while retaining enough capital to pursue near term, smaller scale opportunities. We believe the tender offer at 140p per share represents a very attractive return of cash to our shareholders.

"We continue to see good potential to drive further value growth both through increasing income from our remaining portfolio by improving occupancy and growing rental levels and capitalising on the demand for industrial assets from the investment market.”

The tender offer price represents a premium of 13.8% over Hansteen's closing price of 123.0p per share on 20 March (being the latest practicable date prior to the announcement of the proposed sale of the German and Dutch Portfolio). 

It also reflects premium of 3% to the average Hansteen closing price of 135.9pfor the last 30 days and a premium of 0.7% to yesterday's closing price of 139.1p.

If the maximum number of shares is purchased under the offer, it will dilute the 30 June 2017 NAV per share of 133p by approximately 9p per share.

The tender offer has no impact on the payment, on 27 October 2017, of the interim dividend of 2.3p per share. It will close at 1pm on 3 November with cash payments expected shortly thereafter.

kjefford@costar.co.uk

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