Sale promises Capital windfall
Listed landlord Capital Properties has promised shareholders a one-off windfall from the sale of its management contract.
Wednesday, March 9th 2005, 6:08AM
by The Landlord
It said the money, expected by one analyst to be more than $30 million, would be distributed to investors as a return of capital on a tax-free basis, either through a share buyback or cancellation.But shareholders were also delivered the less palatable news that the management sale could reduce the overall earnings available to be distributed to them.
Capital has proposed a way around the problem: "The total number of shares outstanding will be reduced by the sale buyback or cancellation of shares," it said.
"As a consequence of these two offsetting factors, the board considers that the impact on pre-tax earnings on a share basis is not likely to be material."
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