bfw liegenschaften plans share buyback
bfw liegenschaften ag is planning a share buyback program amounting to a maximum of ten percent of its share capital. Shares with an equivalent value of up to CHF 24.4 million will thus be repurchased.
As announced by bfw liegenschaften, the share buyback program will be implemented by issuing put options and will run from March 22 to April 4, 2017. Specifically, it is planned that bfw will allocate one put option free of charge to each registered share A (par value CHF 7.50) and 0.1 put options to each registered share B (par value CHF 0.75) as of March 22, 2017.
Ten put options each entitle the holder to tender one registered share A at an exercise price of CHF 47.00. According to the company, this exercise price corresponds to a premium of 16 percent of the average volume-weighted stock market price during the past 60 trading days.
The put options are expected to be tradable on a separate trading line on the SIX Swiss Exchange from March 22 to April 4, 2017. The exercise of the put options is expected to take place on April 6, 2017. The buyback volume amounts to a maximum of 519,125 registered shares A or ten percent of the share capital. Beat Frischknecht, as direct and indirect major shareholder, currently does not intend to participate in the share buyback program.
Following the share buyback, the Board of Directors intends to propose the cancellation of the repurchased shares for the 2018 Annual General Meeting at the latest and to reduce the share capital accordingly following approval by the Annual General Meeting.
According to preliminary figures for the 2016 financial year, bfw liegenschaften reported an equity ratio of over 46 percent as of December 31, 2016. The share buyback program aims to return further capital to shareholders in addition to the annual distribution from the reserve from capital contributions, the company says.
