CLS Holdings, the FTSE 250 office landlord with a £2.3bn portfolio in the UK, Germany and France, has proposed a tender offer of its shares due to its persistent and unjustified share price discount to net tangible assets.
Subject to the discount persisting, CLS said that it intends to undertake a tender offer of its ordinary shares – the size of which will be scaled to ensure the group’s loan-to-value is still within an acceptable level. The terms of tender offer will be announced following the publication of the group’s half year results on 10 August 2022.
The company has become frustrated at the discount, which sits at around 35%, despite proving the value of its assets with a number of property sale at or above 31 December 2021 valuations.
Fredrik Widlund, chief executive, said: “The board is clear that the current share price discount to NTA is unjustified given that we are in the process of disposing of a number of properties at or above 31 December 2021 valuations and the quality of our portfolio is proving resilient in a challenging macro environment. Consequently, CLS intends to undertake a tender offer following the 2022 half yearly financial results.”
CLI : CLS frustrated by discount and proposes tender offer