INVL Baltic Real Estate's Share Buyback Strategy Explained
Understanding INVL Baltic Real Estate's Share Buyback Initiative
The Management Company INVL Asset Management, UAB of INVL Baltic Real Estate, has made a noteworthy decision regarding the purchase of its own shares. With a reserve of EUR 2.4 million prepared for this initiative and following a resolution from the General Shareholders Meeting, the company is set to commence the buyback of its ordinary registered shares, which have a nominal value of EUR 1.45.
Details of the Share Buyback
The purchase period will take place from 14 October to 20 October. During this timeframe, the company plans to acquire a maximum of 73,000 shares, amounting to about 0.9% of its authorized capital. The total maximum expenditure for this buyback is EUR 219,000, with each share priced at a maximum of EUR 3.00.
The execution of this share buyback will follow Dutch auction principles, indicating that if there is strong demand, the final purchase price may differ from the maximum limit set. In case of excess offers, the lowest-priced shares up to the maximum quota will be purchased. This strategic method ensures that all sellers are compensated at the same determined price.
Significance of the Buyback for Shareholders
Vytautas Bakšinskas, the Real Estate Fund Manager at INVL Asset Management, emphasized the benefits of the share buyback, stating that it presents a unique opportunity for shareholders. It allows them to sell all or portions of their shares, while those retaining their shares will own a larger stake in the company’s assets and profits, leading to greater potential growth without needing to invest more.
Current Market Context
As of 9 October, INVL Baltic Real Estate’s shares traded at EUR 2.92, indicating a favorable market position leading up to the buyback period. This pricing sets the stage for a potential increase in shareholder value as the buyback program progresses.
About INVL Baltic Real Estate
INVL Baltic Real Estate specializes in real estate investments in major Baltic cities, including Vilnius and Riga. Its properties include prime office buildings located in significant urban areas and an extensive plot of land in a logistics park – crucial for capitalizing on increasing demand for real estate in this region. As of June 2025, these properties boasted impressively high occupancy rates, further supporting the company's stability and appeal to investors.
The overall portfolio comprises a total area of 19,600 square meters, valued at EUR 47.2 million. Since its inception in 2016, the fund has consistently outperformed, returning a total of EUR 2.38 in dividends per share to its investors, an encouraging sign for those considering involvement in the fund.
Future Outlook for INVL Baltic Real Estate
As a closed-ended investment company, INVL Baltic Real Estate will continue its operations under the management of INVL Asset Management, reinforcing its commitment to generating solid returns for investors. The operational status as a closed-ended investment will remain until at least 2046, with a potential 20-year extension on the horizon, showing a long-term vision for stability and growth.
INVL Asset Management's Vision
As the leading asset manager in the Baltics, INVL Asset Management emphasizes maximizing risk-adjusted returns for its investors while positively influencing the economic landscape of the region. With over 30 years of expertise, it manages more than EUR 2 billion across various asset classes, including private equity and renewable energy.
The firm not only focuses on direct investments but also supports private equity ventures, land development, and even family office services. This broad spectrum of operations underlines their dedication and capability in navigating complex investment landscapes to generate favorable outcomes for all stakeholders involved.
Frequently Asked Questions
What is the purpose of INVL Baltic Real Estate's share buyback?
The share buyback aims to reduce the company's share capital and potentially increase value for remaining shareholders.
How many shares will INVL Baltic Real Estate buy back?
The company plans to buy back up to 73,000 shares during the designated purchase period.
What is the maximum price per share in the buyback?
The maximum purchase price is set at EUR 3.00 per share, subject to market conditions.
When will the share buyback occur?
The share buyback will start on 14 October and end on 20 October.
What effect does the buyback have on shareholders?
The buyback provides an opportunity to sell shares while increasing the value of remaining shares for current investors.
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