- January 2, 2020
- Posted by: dawgenglobal
- Categories: Caribbean, Finance, Mergers and Acquisition, News
Regional Real Estate Management Company, Eppley Caribbean Property Fund has announced a buy-back of its shares.
This will be done on the open market in Jamaica and Barbados, where the shares are currently traded. The move comes as the directors of the company contend that the shares are being traded way below their true value.
Eppley said the buy-back is taking place in accordance with its existing Share Buyback Policy, which was previously announced.
According to Eppley, ”the directors believe that the company’s shares are currently trading at a significant discount to the company’ s fair value for which its Net Asset Value per Share is a proxy. The directors, therefore, believe that repurchasing shares would unlock significant value for the company’s shareholders.”
As such, Eppley has given notice of its intention to purchase shares on the open market from time to time using the company’s cash at a price below or equal to the Company’s Net Asset Value per Share (J$48.64 per share as of September 30, 2019).
In accordance with the rules of the JSE on share repurchases, Eppley said any purchases will take place following the expiration of 21 days from this notification and will immediately provide the JSE with the details of any purchases.
With a number of acquisitions that took place in 2018 and 2019, Eppley Caribbean Property Fund experienced an about-turn in its financial performance for financial year 2018/19.
For the year ended September 30, 2019, the company recorded its most profitable performance since its inception in 2013 and experienced significant improvements in all key financial performance metrics.