BFW Liegenschaften plans share buyback

BFW Liegenschaften generated EBIT of CHF 26.5 million in the 2018 reporting year, compared with CHF 22.6 million in the previous year. Profit including revaluation income increased from 18.0 to 20.6 million; revaluation income was 10.3 million. The net asset value is put at CHF 42.73 (as of December 31, 2018).

A cash distribution in the form of a par value reduction of CHF 1.40 per category A registered share and CHF 0.14 per category B registered share is to be proposed to the 2019 Annual General Meeting, BFW Liegenschaften further announces. The distribution yield would thus be 3.3%.

With the publication of the business figures for 2018, the company also announced a share buyback program of a maximum of 9.46% of the share capital. The background is the "robust capitalization" with an equity ratio of 38.3% and a still expected cash inflow from the sale of smaller investment properties.

Accordingly, in the period from March 21 to April 3, 2019, up to 354,000 Class A registered shares are to be repurchased for a maximum consideration of 15.93 million. The public buyback offer would be made at a fixed price of CHF 45.00 per Class A registered share, corresponding to a premium of 4.26% on the average volume-weighted stock exchange price of the last 20 trading days (record date 08.03.2019). Beat Frischknecht intends to participate in the buyback offer only with the registered shares A held by BFW Group AG, the company said.

Once the share buyback has been completed, it is planned to propose to the 2019 Annual General Meeting that the repurchased shares be cancelled. Following approval by the Annual General Meeting and the debt call, the share capital can be reduced, probably in July 2019. (ah)