Eighty per cent of Redcape’s non-institutional investors have chosen to stick with the pub group according to the results of a share buy-back undertaken as part of its ASX delisting.
Under the delisting plan, Redcape shareholders were given an option to either remain invested in Redcape as an open-ended unlisted fund or exit in an off-market buy-back at $1.15 per security.
Redcape says it received applications for 126.5 million ordinary securities which was well below the maximum amount of 215 million shares that Redcape was permitted to buy back.
The low take-up means those Redcap investors choosing to exit will do so at a premium price as no scale-back will apply.
Redcape announced its plans to delist in August which it attributed to difficulty in obtaining broader institution and retail investor support despite its strong performance.
“The result of the buyback demonstrates the strong ongoing support of Redcape’s investor base,” Redcape chairman Nick Collishaw said.
“Over 80 per cent of non-institutional investors able to retain their holding in the unlisted fund have elected to do so, thus allowing the remainder to exit in full at a significant premium to historical trading prices.”
Redcape CEO Dan Brady said, “The outcome of the buy-back together with investor feedback is a clear endorsement of the delisting proposal.”
The 145.5m buy-back will be funded by $115m of net debt funding from Redcape, $1.4m from the proceeds of a rights issue, and $29.1m via an issue of 25.3m new securities to MA Moelis Australia Advisory.