Company had received an approach from a third party expressing interest in a potential acquisition of the Company's wholly owned subsidiary Candor Investments Limited, the holding company for UCP's property interests, the Company announces that it has today entered into an agreement with an affiliate of Brookfield Property Partners ("Brookfield") for the sale and purchase of the entire issued share capital of Candor.
· The Disposal Agreement provides that Brookfield will acquire Candor, subject to certain conditions, for an aggregate cash consideration of approximately £205.9 million. · Following Completion and based on the Assumptions, the Company is expected to have the cash resources to make capital returns to Shareholders of approximately 56 pence per Ordinary Share in aggregate which represents: - a 45.0 per cent. premium to the Company's prevailing share price as at 2 April 2014 (being the day before the Company announced it had received an approach for Candor); - a 79.2 per cent. premium to the Company's lowest share price in the last twelve months on 25 September 2013; and - a premium to the Company's estimated NAV per Ordinary Share (as at 31 March 2014) of approximately 53 pence. · Completion of the Disposal will require, inter alia, the approval of Shareholders, in accordance with the requirements of the AIM Rules. · The Company will also seek Shareholder approval to adopt a new Investing Policy to return capital to Shareholders following the completion of the sale of Candor · A circular is being posted to Shareholders today setting out the background to and reasons for the Disposal and convening an Extraordinary General Meeting, for 11:30 a.m. on 27 June 2014. The Chairman's letter, as contained in the Circular, is set out below.
Terms used and not defined in this announcement bear the meaning given to them in the Circular to be published today.
Donald Lake, Chairman of UCP, commented:
"The offer for UCP's property interests from Brookfield at above the latest book valuation reflects the hard work put in over recent years to let the office space and grow income, in order to achieve the best possible price on behalf of investors in the Company. The Independent Directors believe that the proposed sale represents a very attractive opportunity for investors to realise strong value from the properties and facilitate a distribution of the proceeds, and I urge all Shareholders to vote in favour of the resolutions proposed at the Extraordinary General Meeting."
Just looked at the fundamentals for this share and I'm baffled. Now I know I should probably go through tons of RNSs to find out what's what but I'm at work and don't have the time so here's my question:
How is it that in 2013 Revenue was 29.4m and Profit before tax was 34.4? How can Profit be higher than revenue?!
On 24 May 2013 Nectrus Limited, the Company's Investment Manager, acquired 527,000 ordinary shares in UCP at 37.96 pence per Ordinary Share. Following this transaction, Nectrus Limited is interested in 49,042,428 Ordinary Shares, representing 13.62% of UCP's issued share capital.
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