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Threshold price for Graphisoft Park buyback set at HUF 6,280

Graphisoft Park, a listed company that owns and operates a business park in the north of Budapest, has set the maximum price for a planned share buyback at HUF 6,280 per share, disclosures published on the website of the Budapest Stock Exchange show, state news wire MTI reports.

The threshold 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 shareholders will vote on the EUR 33 million structured share repurchase and the maximum price at an extraordinary general meeting on March 2.

Last November, Graphisoft Park said it signed a ten-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.