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Dalata has launched a share buy-back programme of up to €30m (£25.3m).
The company has entered into non-discretionary agreements with J&E Davy (Davy) and Joh.
Berenberg, Gossler and Co. KG, London Branch (Berenberg) to purchase the company’s ordinary shares of EUR 0.01 pence for an aggregate value (excluding expenses) of up to €30m (£25.3m) on its behalf, and to make trading decisions under the Buy-back Programme independently of the company in accordance with certain pre-set parameters.
The Buy-back Programme will commence in the coming days, subject to market conditions and is subject to customary early termination rights and from time to time, the board will assess the progress of this programme in light of the company’s capital allocation needs.
The purpose of the Buy-back Programme is to reduce the share capital of the company, and under the terms of the programme, the shares will be repurchased on Euronext Dublin and will subsequently be cancelled.
The news comes after the group’s revenues rose by 6% to €302.3m (£254.8m) in the first half of the year, but pre-tax profits fell by 15% to €35.8m (£30.2m) as trading was softer than expected over the period.
The group attributed its profit decline to the like-for-like performance at its hotels, as like-for-like RevPAR was down by 1% to €108.57 (£91.5m), while occupancy fell from 78.4% to 77.6%.
Dalata said: “Details of any ordinary shares repurchased will be notified to a Regulatory Information Service by the company following any repurchase. The company confirms that currently it has no unpublished inside information.”
