TIDMVOR
RNS Number : 4585Q
Vordere PLC
21 October 2019
21 October 2019
VORDERE PLC
("Vordere" or the "Company)
Acquisition of Brazilian Properties
The Company is pleased to announce that it has signed binding
agreements to acquire five properties in Brazil (the "Acquisition")
for a total purchase price of GBP25,855,594.92, payable in the
Company's shares. The five properties were valued by ReMax, with
BDO LLP providing Companies Act Section 593 approval.
Four of the properties subject to the Acquisition are located in
the state of Rio Grande do Norte, with three just to the north of
Natal, close to its world-famous beaches, and one in its fastest
growing suburb just to the south. The fifth property is a large
residential development property in the state of Pernambuco Brazil
and lies immediately adjacent to the newly constructed, and
fourth-largest hospital in the state as well as within several
hundred meters of new schools, shopping malls and other
infrastructure attractive for the successful building of a large
housing estate.
The Acquisition follows the conclusion of negotiations that
started in May 2018 and which have resulted in an acquisition in
accordance with the Company's published investment strategy.
In consideration for the Acquisition the Company has allotted
129,277,975 new ordinary shares (the "Consideration Shares") at a
price of GBP0.20 per share in the capital of the Company (the
"Share Allotment") by way of the issuance of certificated
shares.
Issued Share Capital and Total Voting Rights
The Company's total issued share capital prior to the date of
this announcement was 477,682,372 ordinary shares of a nominal
value of GBP0.02 per share ("Ordinary Shares"). The Company does
not hold any Ordinary Shares in Treasury other than 10,426,780
Ordinary Shares which are pending completion of conditions in
respect of one acquisition agreement in Germany.
Thus, following the issue of the Consideration Shares and the
Share Allotment, the issued share capital of the Company is
606,960,347 Ordinary Shares. The total voting rights in the Company
are therefore 606,960,347 and this figure may be used by
shareholders as the denominator for the calculations by which they
determine if they are required to notify their interest in, or
change to their interest in, the share capital of the Company under
the Financial Conduct Authority's Disclosure and Transparency
Rules.
Application for Listing
The Acquisition Agreements were conditional upon the issue of
Consideration Shares, which have been duly issued.
The Company will submit a prospectus to the UK Listing Authority
for admission to trading of the Consideration Shares, which is
dependent upon the approval of the Prospectus and the admission of
the Consideration Shares to the standard segment of the Official
List and to trading on the London Stock Exchange.
The Company will provide appropriate updates as matters
progress.
Trading update
Since 31 March 2019, the Company has increased its total assets
from GBP24.2m to GBP84.5m as a result of the acquisition of six new
German properties via the issue of consideration shares, as
outlined in the announcement on 4 July 2019. The net asset value
per share increased by 44% since the year ended 31 March 2019, from
11.67p per share to 16.81p per share as at 31 August 2019, and
based on shares in issue of 199,750,418 at 31 March 2019 having
increased to 477,682,372 as at 31 August 2019.
Based on the 7 October 2019 "Trading Update" the Company has
increased its total assets from GBP84.5m to GBP110m. The net asset
value per share increased by 8.1% since the year ended 31 March
2019, from 16.81p per share to 18.18p per share as at 21 October
2019, and based on shares in issue of 477,682,372 at 31 August 2019
having increased to 606,960,347 as at 21 October 2019.
Commenting Nicholas Hofgren, Chief Executive of Vordere, said:
"We are delighted to have acquired these properties in Brazil. The
Acquisition is in line with our stated strategy to increase
diversification, and in particular, in markets straightforward for
real estate development. This is also in line with our strategy to
acquire property in higher growth economies, such as that of
Brazil, in order to balance the overall portfolio and provide
greater opportunities for faster and more balanced growth of NAV
per share. We are in particular very pleased that we were able to
structure the transaction in such a way as to avoid any drag on NAV
from real estate transfer tax. We would also note our extreme
satisfaction that the sellers of the assets expressed their
confidence in the current management team and strategy of Vordere,
accepting GBP0.20 of value per share of Vordere.
With the Acquisition we have also reached our short-term target
to increase our total assets to over GBP100 million, whilst
enhancing the net asset value per share. Our medium-term goal
remains to continue to undertake further acquisitions, utilising
our equity and cash resources, that will enhance shareholder value
and deliver medium to long term counter-cyclical gains for our
shareholders.
I look forward to providing further updates on our progress in
due course."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No 596/2014.
This announcement and the information contained herein is not
for release, publication or distribution, in whole or in part,
directly or indirectly, in, into or from any jurisdiction where to
do so would constitute a violation of the relevant laws or
regulation of such jurisdiction.
Enquiries
Vordere PLC
Nicholas Hofgren, Chief Executive Officer via IFC
Claire Jackson, Company Secretary +44 (0) 117 918 1314
Greenwoods GRM (Legal Adviser)
Alper Deniz +44 (0) 207 504 1157
IFC Advisory (Financial PR and IR)
Tim Metcalfe
Graham Herring
Zach Cohen +44 (0) 203 934 6630
About Vordere
The Company is a property investment and development company
currently primarily focused on the German residential market. Our
business model is to apply private equity techniques to generate
medium to long term counter-cyclical gains for shareholders. In
addition to the investments in Germany, the Board continues to
explore opportunities to grow, in particular, in markets with high
growth prospects in order to balance the portfolio and provide
greater opportunities for growth. We are in discussions with
several vendors to achieve this goal in Europe and the
Americas.
Further information may be found at: http://vordere.com
LEI number of Vordere PLC: 213800VALWEYWTLOX423
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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