Meta Estate Trust receives shareholder approval to allocate profits achieved in FY2023 in bonus shares, through a capital increase of 9 million RON, a share buyback program and a bond issue.
Bucharest, 29th of April 2024:
Meta Estate Trust, (trading symbol MET), a holding company operating in the real estate sector and acting as a gateway between the real estate market and the capital market, has obtained shareholder approval for a number of strategic decisions regarding the company's future. Among these, the most important points discussed and approved at the Extraordinary General Meeting of Shareholders concern an increase in the share capital, a share buy-back programme to be implemented over the next 18 months and a bond issue of up to EUR 5 million.
Alexandru Bonea, CEO Meta Estate Trust: "Shareholders have expressed their vote of confidence in the strategic direction of the company by approving all the decisions proposed by the Board of Directors of Meta Estate Trust."
This gives us the necessary tools to navigate this financial year in which our sector is proving to be marked by uncertainty and challenges."
Distribution of profits for 2023 in free shares to Meta Estate shareholders through an increase in the company's share capital
One of Meta Estate Trust's medium and long-term objectives is to grow organically and reinvest the results achieved. To this end the mechanism for distributing the company's profit approved by the shareholders is provided for in the company's articles of association and aims to remunerate shareholders in shares for the performance achieved by the company.
MET's share capital is composed of 82,241,760 class A (ordinary) shares and 11,249,976 class B (preference) shares. The share capital increase will be carried out through the issue of bonus shares to be granted to shareholders holding ordinary and preference shares, in an asymmetric manner where preference shares will receive 26 ordinary shares per 100 preference shares held (0.26/share) and ordinary shares will receive 7.2 ordinary shares per 100 ordinary shares held (0.072/share).
Also under a Proxy Prospectus, Meta Estate Trust will offer shareholders the option to subscribe for additional shares to maintain their shareholding.
By implementing this mechanism, the company still has access to the capital raised from profits and can use it for new investments.
Share buy-back programme with the intention of reducing the discount between the trading value of the share and the book value of the share
Through the share buyback mechanism, which will run for a period of 18 months in accordance with capital market regulations, Meta Estate Trust wishes to increase the liquidity of the share and with it the intended effect of increasing the value of the price per share.
Following shareholder approval, Meta Estate Trust will prepare and publish the Repurchase Programme. The programme will be carried out through a broker who will administer on behalf of the company the repurchase of shares through daily placements of orders in the market within the limits set by the regulations in force. The maximum price approved at the AGM will be determined quarterly and will not exceed 85% of the book value of a share determined on the basis of the financial statements or balance sheet.
At the end of the programme the repurchased shares will be cancelled.
Meta Estate Trust has received approval to issue bonds of up to EUR 5 million in the next period, as appropriate.
The bond programme will allow the company, if it identifies a need or opportunity for financing for new or current projects, to be able to raise the amounts from the financial market through a bond issue. In this way the company can access another source of available funding, as opposed to the traditional bank financing which is often more restrictive for players in the real estate market.
About Meta Estate Trust:
Meta Estate Trust is a holding company, active in the real estate sector, founded in March 2021 by a group of Romanian entrepreneurs with experience in real estate and capital markets. Since 29th of August 2022, Meta Estate Trust is listed on the Bucharest Stock Exchange, in the AeRO market, with the stock symbol MET. As of 20th March 2023, the MET share is included in the BETAeRO index.
The investment policy is based on a mix of investment typologies with different return and risk profiles, with a diversified and flexible portfolio that can easily adapt to market cycles.
