November 1 (SeeNews) - Bulgaria's Park REIT [BUL:4PK] said on Thursday that its majority owner - Retail Management, has submitted a buyout offer for the remaining 39.88% stake in the real estate investment trust it does not already own
Retail Management is seeking to acquire 3,876,865 shares in Park REIT at 0.30 levs ($0.17/0.15 euro) apiece, the real estate investment trust said in a bourse filing.
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On October 26, Retail Management increased its stake in Park REIT to 60.12% from 46.64% via transactions at a weighted average price of 0.30 levs per share.
The Financial Supervision Commission has not yet cleared publication of the offer.
Following the buyout offer, Retail Management plans to repay Park REIT's debt, restructure the company and carry out a capital increase, if the positive trend on the real estate market continues during the next 5 to 8 years.
The company's plans do not include taking further debt, excluding working capital loans in case of lack of liquidity. Park REIT will also not make investments until it repays its debt. Retail Management will also change the REIT's management company and board of directors.
According to Park REIT's interim financial report, the company had 1.5 million levs in short-term liabilities at the end of September, of which 1.2 million levs in trade loans and 229,000 levs in tax payables.
At the same time, the company had just 18,000 levs in current assets, of which 12,000 levs in expected value added tax returns.
(1 euro = 1.95583 levs)