Goldman Sachs has since March 27 a 0.85% stake in the housing developer Neinor Homes compared to 6.6% the previous day.
According to financial sources explain to Vozpopuli, the residential company and the US investment bank agreed end early to the treasury stock program for which the developer hired Goldman in the middle of last year to raise the value of Neinor’s shares.
In mid-2019, Neinor’s share ranged from 10 to 11 euros per share. In September, it reached over 12. Today, it is around 7, with a market capitalization of 560 million, impacted by the crisis of coronavirus. Neinor’s program with Goldman expired next October.
“The treasury stock program with Goldman contemplated up to 100 million, of which at the end of 2019 we had made a disbursement of almost 50 million, this is equivalent to the 5.7% that Goldman had of our treasury stock at the end of the year. We had active the repurchase of shares and although the expiration of the contract with Goldman is in October of this year, as it is something that we do not have active or pending to use, this part has been closed passing that percentage to our name “, they explain from Neinor , which had 100 million in cash on hand at the beginning of March.
“The swap contemplated up to 100 million potential treasury shares. Neinor decided to limit it to 50 million a few months ago. They are not going to use it as a whole and having liquidity to spare, the agreement for early cancellation has been reached. For this reason, the shares are now listed in the name of the company, “added other sources familiar with the transaction.
Since Goldman Sachs have preferred not to make statements. The US investment bank last week forecast a global cut in dividends of 25% in 2020 and a 10% collapse of the Spanish economy.
After the early closure of the Neinor treasury stock program, Goldman has been left with a stake in the developer of the 0.85% (0.82% via shares and 0.03% via financial instruments).
Before the treasury stock program began, the US investment bank had a stake in Neinor del 2.18% (0.40% via shares and 1.77% via financial instruments), the lowest it had had in the developer that emerged in 2017, as recorded in the records of the National Stock Market Commission.
According to them, the developer has as its main shareholders the French fund Orion (28%), the Israeli To give (19.3%) and al Bank of Montreal (5.2%).
Neinor has closed the last financial year meeting its redefined objectives after the profit-warning of April of last year, delivering nearly 1,300 homes in 2019 and achieving an Ebitda of 107 million compared to the expected 70, with an income of 489 million. It had, at the end of 2019, assets with a net value of around 1,300 million.
With charge to these accounts, the developer decided to anticipate from the first quarter of 2020 40 million of the 200 million dividends promised to shareholders for the period 2021-2022.
Nevertheless, on the occasion of the crisis caused by the coronavirus and the subsequent closure of works, the company decided defer dividend payments to shareholders And he assured that he will redefine the conditions of those payments when “there is a clear visibility of the impact of the crisis.” And this, after agree to postpone your customers’ payments for two months.