(MENAFN– The Rio Times) Multiplan, a top shopping center operator in Brazil, is changing its shareholder structure with a new share buyback plan approved by investors.
This move comes after the Ontario Teacher’s Pension Plan (OTPP) announced it would sell its entire 18-year stake in Multiplan, totaling 111.2 million shares. Earlier this year, OTPP already sold half of its shares.
Multiplan’s founder, José Isaac Peres, bought 21.2 million shares from OTPP, raising his ownership to 35.37%. The rest of the shares will be repurchased by Multiplan.
At a shareholder meeting, 99.9% voted in favor of the buyback plan at R$22.21 per share, totaling about R$2 billion ($357.14 million). This price is 16.2% lower than the average share price over the last 30 days.
Existing shareholders will see their stakes grow by 18.4% without extra investment due to the buyback. This also indicates a significant sale of Multiplan’s properties at a 57.8% discount.
The company plans to fund the buyback using a mix of its resources and external financing while assuring continued dividend payouts. Analysts have responded positively, with BTG Pactual maintaining a “buy” recommendation due to Multiplan’s strong capital structure.
This transaction signals the end of OTPP’s long-term investment since 2006. Since its IPO in 2007, Multiplan’s shares have gained 221%, outperforming the Ibovespa index, which increased by 145% in the same period.
This buyback shows Multiplan’s confidence in its future and its commitment to boosting shareholder value, as the market watches how it navigates Brazil’s competitive shopping center sector.
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