Paris-listed property company Gecina said on Thursday that its board will carry out a detailed examination of the ruling by French financial regulator AMF that a share buyback programme cannot go ahead. Buying back and cancelling almost 14 million shares was to be part of the process of demerging Gecina from Spanish real estate group Metrovacesa.
Paris-listed property company Gecina said on Thursday that its board will carry out a detailed examination of the ruling by French financial regulator AMF that a share buyback programme cannot go ahead. Buying back and cancelling almost 14 million shares was to be part of the process of demerging Gecina from Spanish real estate group Metrovacesa.
The Autorité des Marchés Financiers (AMF) issued a judgement stating that the share buyback was unfair as it would leave shareholders Joaquin Rivero and Bautista Soler with such a large joint holding that they would be required under stock market regulations to launch a bid for the entire company.
Splitting up Gecina and Metrovacesa is designed to end a long running dispute between Metrovacesa's main shareholders, the Sanahuja family on one side and Rivero and Soler on the other. Gecina's board agreed in November to transfer 37 real estate assets, valued at around EUR 1.9 bn, to Medea, 96.7% owned by the Sanahuja family's holding company. The board also approved the buyback offer for up to 13.9 million Gecina shares, to be paid for in Medea shares.
The AMF said Gecina's proposal to reduce the number of issued shares from 61 million to 47 million failed to give shareholders clear and full information, as Rivero and Solero would hold over 42% of the French company and would be obliged to make an offer for the rest of the shares.
