Ei Group completes first tranche of property portfolio sale; launches share buyback
Source - SMW
Ei Group said it had completed the sale of the first tranche of its commercial property portfolio and also announced it would launch a share buyback programme of up to £35m.
Total expected gross aggregate consideration in respect of the sale of the 370 commercial properties was £348.0m, of which £336.6m had now been received.
The gross proceeds of the selling the remaining 22 commercial properties, would in aggregate amount to £11.4m, the company said.
The company said it would use the proceeds to reduce debt and buyback shares.
As the majority of the proceeds from the disposal would be used to repay borrowings, we 'now expect our Group interest costs to be in the range of £136 million to £138 million in the current financial year and £120 million to £124 million in the financial year to 30 September 2020,' the company said.
'The 370 commercial properties comprising the Portfolio contributed £26 million to Group EBITDA in the financial year to 30 September 2018,' it added.
The company in separate statement it had launched a share buyback programme of up to £35m today, 15 March.
The company said it would purchase a maximum of 69,536,495 to reduce its share capital and return funds to shareholders who sell their shares.
At 8:03am: (LON:EIG) EI Group Plc share price was +6.75p at 207.75p