(Alliance News) - PPHE Hotel Group Ltd on Wednesday unveiled plans for a share buyback and said it is edging towards declaring a "modest" interim dividend.
The Amsterdam-based hotel owner and operator said it plans to buyback up to 300,000 shares for a maximum of GBP1.7 million in total. The buyback begins on Wednesday and will end no later than a year from now.
Its EPRA net reinstatement value per share stands at GBP22.15, a "substantial premium" to its share price.
PPHE shares were 3.7% higher at 1,530.00 pence each in London on Wednesday morning.
"In light of the current share price discount relative to the EPRA NRV per share, and following consultation with shareholders, the board believes it would be in the best interests of shareholders to return a portion of capital to shareholders by means of the share buyback programme," the company explained.
PPHE said a decent start to 2022 continued in the second quarter.
"Following this positive start to the 2022 financial year, the group balance sheet is strong and flexible enough to support both future growth opportunities and a resumption of returns to shareholders," PPHE said.
The company added that it will also "consider favourably" declaring an interim payout. PPHE suspended dividends in the wake of the Covid-19 pandemic.
A dividend is subject to its "positive" start to the year continuing.
"The group will also update shareholders at the time of the interim results as to its future dividend policy over the short and medium term, as the group seeks to strike the right balance between capturing future investment opportunities; ensuring the balance sheet is flexible enough to withstand any further external volatility whilst also seeking to deliver an attractive and growing income stream for shareholders," PPHE said.
By Eric Cunha; ericcunha@alliancenews.com
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