CPI Property Group (CPIPG) announced a significant share buyback program today, offering to repurchase up to 185 million shares at €0.794 per share, potentially representing a total investment of approximately €147 million. Shareholders greenlighted such a move back in May 2023 by accepting a broader program allowing repurchases of up to 1 billion shares. The tight timeline of the offer, running from December 13 to December 17 suggests a certain level urgency.
The company has set both a minimum threshold of 10 million shares and a maximum of 185 million shares. That can mean a variety of things, especially given the relatively low price offered. Were the market to conclude €0.794 represents too good a value to ignore and participation exceeded the maximum limit, a pro-rate allocation would be implemented. In general though, share buybacks tend to signal confidence in the company’s value and can help support the stock price. CPI will cancel the shares it buys, reducing the capital base and increasing the level of ownership of those shareholders to hold on to their shares.
In recent weeks, CPI announced plans to create a new retail fund for rental flats that it would seed with units from its own portfolio.
