MENAFN – The Rio Times: Brazilian shopping center operator Multiplan is changing its shareholder structure. Investors approved a major share buyback plan following the Ontario Teacher’s Pension Plan’s (OTPP) decision to sell its entire stake after 18 years.
This year, OTPP divested 111.2 million shares after previously selling half of its stake. Multiplan’s founder, José Isaac Peres, bought 21.2 million shares, increasing his ownership from 26.2% to 35.37%. The remaining 90 million shares are up for repurchase.
A shareholder meeting saw 99.9% support for the buyback at R$22.21 per share, totaling around R$2 billion ($357.14 million), a 16.2% discount from the average stock price over the last 30 days. This will boost existing shareholders’ stakes by 18.4% without extra investment.
The deal implies significant discounts on Multiplan’s real estate portfolio, valuing properties at 57.8% below fair market value, with a capitalization rate of 13%, among the highest since 2007. Multiplan plans to fund the buyback using its resources and third-party financing while maintaining its dividend policy.
Market analysts, including BTG Pactual, have responded positively and recommend buying Multiplan’s stock based on its strong capital structure. This marks the end of OTPP’s long-term investment, which began in 2006. Since its IPO in 2007, Multiplan’s shares have risen by 221%, outperforming Brazil’s Ibovespa index (145%). The buyback reflects Multiplan’s confidence in its future and commitment to increasing shareholder value.
Investors will be watching Multiplan closely as it navigates a competitive market.
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