Virgata’s Plaza Centres proposals ‘clearly benefit all shareholders’ – Jordi Goetstouwers Odena

Virgata Group’s consolidation as Plaza Centres’ largest shareholder is now translating into strategic proposals, with Founder Jordi Goetstouwers Odena setting out what he describes as a value-enhancing reset for the Sliema landmark.

Shareholders will meet at an Extraordinary General Meeting on 25th March to vote on a package of measures that includes a share buyback programme, a bonus share issue, and a reduction in the size of the Board of Directors.

The proposals follow Virgata’s move to become the largest single shareholder in Plaza Centres, after acquiring a 31.4 per cent stake from MAPFRE MSV Life and adding it to its previous 6.2 per cent holding.

According to Mr Goetstouwers Odena, the objective is straightforward: strengthen capital allocation discipline, enhance liquidity, and reduce the gap between intrinsic value and market valuation.

“Our initiative clearly benefits all shareholders,” he states. “The intention is to streamline the Board to equip the company for growth, inject a new dynamic into the way the company manages its balance sheet, and offer liquidity tosmall shareholders who wish to exit without being at the mercy of opportunistic low offers in the market.”

“For the shareholders who continue to support the company – as we do – these moves should narrow the discount between the true value of the business and the stock market value.”

At the core of the proposals is an 18-month share buyback authorisation. If approved, Plaza Centres would be able to repurchase up to 2.4 million shares at a price between €0.75 and €0.95 per share – implying a potential outlay of between €1.8 million and €2.28 million.

Repurchased shares would be cancelled.

Another resolution being put to shareholder vote is a bonus share issue distributed from the company’s share premium account. If approved, shareholders would receive one bonus share for every two shares held.

The market reaction has already been notable. Following the announcement, Plaza Centres’ share price rose 15.4 per cent, climbing from €0.78 to €0.90.

Alongside the capital management measures, shareholders will also vote on reducing the size of the Board of Directors.

Under the proposal, the Plaza Centres Board would be composed of five or seven directors, depending on the number of appointees.

Mr Goetstouwers Odena argues that leaner boards are standard practice in larger international real estate holding companies – often far bigger than Plaza – and that a more streamlined governance structure would allow the company to move with greater agility.

“With a streamlined board, the company will then be in a position to work even harder on making Plaza the premier office, retail and F&B destination in the heart of Sliema,” he says.