Successor Buyback Programme
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO ANY US PERSONS OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, SOUTH AFRICA OR JAPAN, OR ANY OTHER JURISDICTION, OR TO ANY PERSON, WHERE DOING SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
This announcement contains inside information as defined under the Market Abuse Regulation. (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. This announcement has been prepared by, and is the sole responsibility of, Real Estate Credit Investments Limited. This announcement has been released by Lucy McDowall of Aztec Financial Services (Guernsey) Limited, Secretary of the Company.
28 March 2024
Real Estate Credit Investments Limited
("RECI" or the "Company")
Successor Buyback Programme
The Board of Directors of Real Estate Credit Investments Limited announces that, having reviewed the current circumstances and assessed the Company's level and allocation of cash available for deployment, it intends to undertake a further buyback programme (the "Programme") which will run to 30 September 2024. The aggregate purchase price of all shares acquired under the Programme will be no greater than £10.0 million. The Company's initial buyback programme will expire on 31 March 2024.
The Company's initial buyback programme was announced on 31 August 2023, with an aggregate purchase price of all shares purchased of no more than £5.0 million. Pursuant to that programme, a total of 4,095,000 ordinary shares of no par value each ("Ordinary Shares") were purchased for treasury for an aggregate amount of £5.0 million. Ordinary Shares were repurchased under the initial programme at an average discount to net asset value per share of 16.2%, with the Company's Ordinary Shares trading at an average discount of 14.1% from 31 August 2023 to 25 March 2024 (the date of the last share repurchase under the programme).
The Programme will occur within the limitations of RECI's existing general authority to purchase no more than 34,376,938 Ordinary Shares as granted by shareholders at the Company's annual general meeting held on 15 September 2023 (with such authority sought to be renewed at the Company's 2024 annual general meeting to allow the Programme to extend to 30 September 2024).
The Company has appointed Liberum Capital Limited ("Liberum") to make market purchases of Ordinary Shares in respect of the Programme. Liberum will purchase the Ordinary Shares as principal (and not as agent) and sell them on to the Company. The Company intends that any Ordinary Shares purchased by the Company will be held in treasury.
Any share purchases will be made in accordance with certain pre-set parameters set out in the terms of Liberum's engagement, the general authority of the Company to repurchase shares granted by shareholders at the Company's 2023 annual general meeting (and in due course the 2024 AGM); and the EU Market Abuse Regulation (596/2014) as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (as amended); and Chapter 12 of the Financial Conduct Authority's Listing Rules.
The maximum price payable per share (exclusive of expenses) must not exceed the higher of: (i) 105% of the average middle market quotations for the five business days preceding the date of purchase; and (ii) the higher of the last independent trade and the highest current independent bid on the London Stock Exchange.
A buy-back of Ordinary Shares on any trading day may represent a significant proportion of the daily trading volume in the Ordinary Shares on the Exchange (and could exceed the 25% limit of the average daily trading volume of the preceding 20 business days as referred to in the Commission Delegated Regulation (EU) No. 2016/1052 on buy-back programmes (as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018)).
Any purchase of Ordinary Shares by the Company will be notified through an RIS announcement by no later than 7.30 a.m. on the following business day. Shareholders should note that whether a buyback of Ordinary Shares is made is based on a number of factors and, accordingly, no expectation or reliance should be placed on Liberum exercising such discretion on any one or more occasions. There is no guarantee that the Programme will be implemented in full or that any Ordinary Shares will be repurchased by the Company. The Programme will not impact the Company's existing Ordinary Share dividend policy, which will continue unaffected through the regular awards of quarterly dividends.
Enquiries:
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Cheyne Capital Management (UK) LLP |
+44 (0) 20 7968 7328 |
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Richard Lang |
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Liberum Capital Limited (Corporate Broker) |
+44 (0) 20 3100 2222 |
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Shane Le Prevost |
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Richard Crawley Darren Vickers |
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Edward Mansfield |
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