AFTER its securities continued to trade at a discount, despite posting a strong full year result, Redcape Hotel Group has passed its proposal to be removed from ASX listing.
With the resolution passing amongst the group’s securityholders, Redcape has now applied to ASX to be delisted, effective 2 November 2021.
The decision to delist was made in August, as Redcape failed to see significant retail investor and institutional support in the listed market, despite underlying the group’s strong underlying performance.
Bouyed by an active pub market, Redcape reported a FY21 net profit of $28.5 million, an increase of 153.6% on the previous year, an operating EDITDA $74.1 million, up 29.6% and underlying earnings of $56.4 million, up 51.7%.
Redcape’s Independent Board Committee felt that better liquidity options, more in line with the group’s portfolio and directors NAV, could be achieved outside the listed market.
With securities no longer to be traded on ASX, the group will conduct an off-market buy-back to ensure all securityholders are given the chance to realise some or all of their investment into Redcape.
In August, the group announced the off-market buy-back would be at $1.15 per security and have a maximum size of $247.3 million, with the buy-back price set at a 22.3% premium to the last closing price at 17 August 2021.
Until the suspension date, securityholders will also be able to trade their securities on-market, subject to demand.
While also ending 2020 by spending $27.5 million on two Brisbane acquisitions, the Shafston and Aspley Hotels.