(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 follows the Ontario Teacher’s Pension Plan (OTPP) deciding to sell its entire 18-year stake in the company. Earlier this year, OTPP divested 111.2 million shares, after already selling half of its holdings two months before.
Multiplan’s founder, Jose? Isaac Peres, bought 21.2 million shares, increasing his ownership from 26.2% to 35.37%. The remaining 90 million shares will be repurchased by Multiplan.
At a recent shareholder meeting, 99.9% voted in favor of the buyback plan, priced at R$22.21 per share, totaling about R$2 billion ($357.14 million). This price is a 16.2% discount compared to the average stock price over the last 30 trading days, benefitting current shareholders by increasing their stakes by 18.4% without extra investment.
The buyback suggests that Multiplan’s real estate portfolio is undervalued, with properties assessed at a 57.8% discount to their fair market value, resulting in a high capitalization rate of 13%. Multiplan will fund this buyback using its resources and external financing, while maintaining its dividend policy.
Market analysts, including BTG Pactual, have a “buy” recommendation for Multiplan, praising its strong financial position. This marks a significant shift as OTPP exits its long-term investment that began in 2006. Since its IPO in 2007, Multiplan’s shares have risen by 221%, outperforming Brazil’s Ibovespa index at 145%. The buyback reflects Multiplan’s confidence in its future and commitment to shareholder value, as the company navigates Brazil’s competitive shopping center market.
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