York Arcade to buy back 37.5% stake

York Arcade Holdings Plc (YAH) has announced a move to buy back 37.5% stake amounting to 4.5 million shares at Rs. 17 each. 

The share repurchase would be in the proportion of three ordinary shares for every eight held.

The number of shares in issue is 12 million. The net asset per share of YAH, a real estate company,  as at 31 March 2017 was Rs. 17.29, up from Rs. 14.92 a year earlier.

Shareholders will be given the opportunity to tender for repurchase by YAH additional shares over and above their pro-rata entitlement which may be repurchased by the company at its discretion in the event that any of the shareholders do not accept the offer in full.

Following the repurchase of shares, the YAH Directors have resolved that the shares of the company be consolidated on the basis of every 10 into one ordinary share, thereby reducing the number of shares in issue to 0.75 million. In the event the number of shares repurchased is to be less than 4.5 million the number of shares to be consolidated and the reduced number of shares arising out of such consolidation would be more than the 0.75 million amount. The proposed moves are subject to shareholder approval. 

The Colombo Fort Land and Building Plc owns 49.27% stake in YAH whilst related parties also hold a further 3.4%. The company has 1,653 shareholders as at 31 March 2017 and the public shareholding is 45.51%.

For the year ended 31 March 2017, YAH posted a pre-tax profit of Rs. 44 million, up by 114% from the previous year. After tax profit grew by 111% to Rs. 33 million whilst turnover grew by 30% to Rs. 80.2 million. For the year ended 31 March 2017, YAH posted a pre-tax profit of Rs. 44 million, up by 114% from the previous year. After tax profit grew by 111% to Rs. 33 million whilst turnover grew by 30% to Rs. 80.2 million.