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Graphisoft Park shareholders approve share buyback

Shareholders of Graphisoft Park, a listed company that owns and operates a business park in the north of Budapest, approved a EUR 33 million structured share repurchase at an extraordinary general meeting on Monday, state news wire MTI reports.

The threshold consideration for the buyback was set at HUF 6,280 per share in the EGM resolution published on the website of the Budapest Stock Exchange.

The threshold consideration is the fair net asset value per share as published in Graphisoft Parkʼs third-quarter earnings report (EUR 19), converted at the National Bank of Hungaryʼs official exchange rate on December 31, 2019.

Graphisoft Park shares traded at HUF 5,080 at 12:53 on Monday.

Last November, Graphisoft Park said it signed a 10-year, EUR 40 mln loan contract with UniCredit Bank Hungary and would propose returning EUR 30 mln-35 mln of the new loan to shareholders in the form of dividend or share buybacks in 2020.

The loan, taken out "to optimize the companyʼs capital structure", will bring total bank debt of the group to around EUR 114 mln, or 43% of its real property assets, Graphisoft Park said at the time.

Graphisoft Park recently converted into the local form of a real estate investment trust (REIT) and is required to pay shareholders 90% of profit as dividends.