Will pay down debt, launch 140 mln pound share buyback (Il Sole 24 Ore Radiocor) - London, 22 Jul - The UK real estate developer Hammerson said that it has entered into a binding agreement to sell its entire interest in Value Retail to Silver Bidco Limited, a newly-formed company incorporated in Jersey and established by certain affiliates of L Catterton, for 705 million euros (600 million pounds) in cash.

The deal is based on an enterprise value of 1.5 billion pounds.

Hammerson intends to use the proceeds for a "significant and immediate deleveraging through a reduction in net debt", to reinvest into assets in its "core markets at higher yields and stronger returns, with a priority on JV consolidation and repurposing asset enhancement initiatives" and a return of capital to shareholders via a share buy back of up to 140 million pounds, representing about 10% of Hammerson's market capitalisation.

The board also announced the intention, following the completion of the disposal, to adopt an enhanced payout ratio policy for ordinary dividends of about 80-85% of adjusted earnings.

Over the medium term, Hammerson said that it expects earnings per share and dividend per share compound annual growth rate of 6-8%.

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(RADIOCOR) 22-07-24 10:48:46 (0214) 5 NNNN