MPO announces US$4.8m of share buybacks to-date
Opportunistic share repurchases form part of strategy to enhance shareholder value
Macau Property Opportunities Fund Limited, managed by Sniper Capital Limited, announces that, since 5 May 2011, it has bought back 2.2 million of its own shares at an average price of 131.53p per share. This represents 2.1% of the Company’s issued share capital. Following the cancellation of the repurchased shares, MPO has 102,800,000 ordinary shares outstanding.
The share buybacks follow the recent exit of various MPO assets which raised US$62 million in net proceeds.
The Company considers opportunistic share repurchases in conjunction with further accretive acquisitions as part of a complementary strategy of enhancing shareholder value.
The Board and the Manager believe that MPO shares present an attractive investment at the prevailing discount to Adjusted NAV. Based on the Company’s latest share price of 142p as at 31 May 2011, MPO shares stood at a 17% discount to the latest Adjusted NAV of US$2.82 or 171.6p* as at 31 March 2011.
MPO remains committed to its stated investment strategy and is currently actively engaged in evaluating a number of attractive acquisition opportunities. The Company may also buy back additional shares on an opportunistic basis and if market conditions allow.
David Hinde, Chairman of MPO said: “The buyback of 2.2 million MPO shares follows our recent successful divestments and demonstrates MPO’s continued focus on creating value for our shareholders.”
Further details
A summary of the Company’s share buybacks to-date is as follows:
|
Date |
Volume |
Price1 (p) |
Value (£m) |
Shares Outstanding2 |
|
5 May 2011 |
925,000 |
131p |
1.21 |
104,075,000 |
|
6 May 2011 |
750,000 |
131p |
0.98 |
103,325,000 |
|
20 May 2011 |
525,000 |
133.21p |
0.70 |
102,800,000 |
|
Total |
2,200,000 |
131.53p |
2.89 |
102,800,000 |
1 Volume-weighted average price
2 Ordinary shares outstanding following cancellation
* Based on a US Dollar/Sterling exchange rate of 1.6448 as of 31 May 2011
The share buybacks follow the recent exit of MPO assets which demonstrates the successful implementation of a complete investment cycle. In April, the Company crystallised value through the sale of its Rua do Laboratório site for US$41 million, representing a net return on investment of 84%. The Company also recently took advantage of strong demand and rising prices for quality accommodation through the bulk sale of ten units at its One Central asset, for US$21 million.
Following these disposals, the Company is proposing to return up to US$17.9 million to Shareholders via a bonus issue of B shares. Approval for implementation of this scheme will be sought at an extraordinary general meeting on 21 June 2011.
MPO’s investment strategy remains unchanged and the Company will continue to opportunistically seek ways of capitalising on Macau’s highly attractive value and growth prospects.