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- Redcape Hotel Group (RDC) is announcing the results from the share buyback the company is carrying out ahead of its planned delisting
- RDC says it received applications for 126.5 million ordinary securities, well below the maximum amount of 215 million shares on offer
- As a result of the low take-up, no scale-back will apply and Redcap says it will allow some investors to exit at a premium price
- The pub and hotel operator announced plans to delist in August amid the ongoing impacts of COVID-19 related lockdowns
- Shares in Redcape opened Wednesday’s trading session at $1.09 per share
Redcape Hotel Group (RDC) has announced the results from the share buyback it is carrying out ahead of the company’s planned delisting.
The hotel and pub operator announced plans to delist off the ASX in August amid the ongoing impact of COVID-19 lockdowns in Sydney and Melbourne.
To support the delisting, the company began carrying out a share buyback of its ordinary securities — offering $1.15 per share.
RDC has received applications for 126.5 million ordinary securities, well below the maximum amount of 215 million shares on offer under the buyback.
As a result of the low take-up, no scale-back will apply and Redcap Independent Non-Executive Chairman Nick Collishaw said it would allow some investors to exit at a premium price.
“The result of the buyback demonstrates the strong ongoing support of Redcape’s investor base,” Mr Collishaw said.
“Over 80 per cent of non-institutional investors able to retain their holding in the unlisted fund have elected to do so, thus allowing the remainder to exit in full at a significant premium to historical trading prices.”
The company advises that payment under the buyback should occur by October 27.
Redcape will also announce the results from an entitlement offer it carried out to fund the buyback, which is fully underwritten by MA Financial Group’s subsidiary, in the coming days.
Shares in Redcape opened Wednesday’s trading session at $1.09 per share.
