24 Jun 2013 07:00
For immediate release | 24 June 2013 |
LXB RETAIL PROPERTIES PLC
(the "Company" or the "Group")
SHARE BUYBACK PROGRAMME
The Chairman's statement which formed part of the interim results announcement on 17 June 2013 included details of transactions and conditional transactions involving the Group's investment properties at Greenwich, indicating that, subject to satisfaction of the conditions to which individual contracts are subject, significant amounts of surplus cash will be generated over the next 18 months. The statement also noted that the Board of the Company is minded to return cash to shareholders as and when it becomes available.
Following the exchange of contracts for the unconditional sale of Stone Lake Retail Park for £32.95m (of which £2m is deferred pending satisfaction of certain conditions), the Board today announces its intention to commence a programme (the "Buyback Programme") for the purchase of its own ordinary shares ("Shares") through its broker, Oriel Securities Limited, which will act on its discretion to purchase Shares on the Company's behalf, subject to certain pre-set parameters, up to an aggregate cost of £20m.
Any Share purchases will be effected in accordance with the Company's general authority to buy back Shares as approved by shareholders at the Company's annual general meeting on 27 February 2013, the AIM Rules for Companies (the "AIM rules") and the rules of the Channel Islands Stock Exchange (the "CISX Rules").
The maximum price which may be paid for each Share is an amount equal to 105% of the average middle market closing price for the 5 business days immediately preceding the date of the purchase.
In addition, given the limited liquidity in the Shares it is possible that, on a given day, the Company may purchase more than 50 per cent of the average daily volume of the preceding 20 business days.
Any Shares purchased pursuant to the Buyback Programme will be cancelled and the purchase will be notified to a regulatory information service in accordance with the AIM Rules and the CISX Rules.
With the exception of Alastair Irvine (who may sell up to 468,750 of his total direct and indirect interest in 2,968,750 Shares), none of the directors intend to dispose of any of their shareholdings in the Company as part of the Buyback Programme. No member of the Investment Manager's team intends to participate in the Buyback Programme.
The directors consider that the Buyback Programme is the most cost efficient and appropriate way to return this excess cash to shareholders, particularly since the amount involved is not significant relative to the Company's market capitalisation. As indicated in the Chairman's statement, in the event that further cash is received (as a result of the transactions at Greenwich or otherwise) such that a large sum became available for return to shareholders, then the directors would continue to consult with shareholders as to the appropriate amount and form of any further returns of capital.
The Board has reviewed the status of each of the Group's investment projects for any material developments since the summary provided to shareholders on 17 June 2013 and considers that it has provided a comprehensive overview of the status of its investment projects and of when shareholders may expect to see progress reflected in the net asset value per share. The only additional development within the portfolio since that summary was issued is that the Group has now been granted planning permission to reconfigure the existing consent at Biggleswade to reflect the pre-letting agreements exchanged with M&S, Next and Matalan. The total floor space remains as previously stated.
For further information please contact:
LXB Manager LLP Tel: 020 7432 7900
Tim Walton, CEOBrendan O'Grady, FD
Buchanan Tel: 020 7466 5000
Charles Ryland/Sophie McNulty/Helen Greenwood
www.buchanan.uk.com