4 July 2022
PALACE CAPITAL PLC
("Palace Capital", the "Group" or the "Company")
Commencement of share buyback
Palace Capital, the Main Market property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London, announces that it is commencing a share buyback programme (the "Programme") to repurchase up to 2.3m ordinary shares of 10 pence each in the capital of the Company ("Ordinary Shares") representing approximately 5% of the Company's Ordinary Shares.
The aggregate purchase price of all Ordinary Shares acquired under the Programme will be no more than approximately £7 million (excluding stamp duty and expenses).
The Company has appointed Numis Securities Limited ("Numis") to manage the Programme.
Share purchases will take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volume. Purchases of the Company's shares under the Programme will commence from today. The Programme is in accordance with the Company's general authority to purchase a maximum of 4,608,893 Ordinary Shares, granted by its shareholders at the Annual General Meeting held on 29 July 2021. The Programme will be effected within the parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU (as in force in the UK from time to time, including where relevant pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2019). The Company confirms that it currently has no other unpublished price sensitive information.
Share repurchases will be made on the Company's behalf and in accordance with the arrangement with Numis in open market transactions, depending on market conditions, share price and trading volume. The maximum price paid per ordinary share will be limited to be no more than the higher of (i) 105 per cent of the average middle market closing price of the Company's ordinary shares for the five business days before the purchase is made, and (ii) the higher of the price of the last independent trade and the highest current independent bid on the trading venue where the purchase is carried out. It is intended that repurchased shares will be held in treasury. Such treasury shares are not entitled to dividends and have no voting rights at the Company's general meetings.
Due to the limited liquidity in the Ordinary Shares, a buyback of Ordinary Shares pursuant to the Programme on any given trading day may represent a significant proportion of the daily trading volume in the Ordinary Shares on the London Stock Exchange and may exceed 25 per cent of the average daily trading volume and, accordingly, the Company may not benefit from the exemption contained in Article 5(1) of Regulation (EU) No. 596/2014.
PALACE CAPITAL PLC
Steven Owen, Interim Executive Chairman/Matt Simpson, Chief Financial Officer
Tel. +44 (0)20 3301 8330
Heraclis Economides / Oliver Hardy
Tel: +44 (0)20 7260 1000
Arden Partners plc
Corporate Finance: John Llewellyn-Lloyd/ Elliot Mustoe
Corporate Broking: James Reed-Daunter
Tel: +44 (0)207 614 5900
Dido Laurimore/ Giles Barrie
Tel: +44 (0)20 3727 1000