Qube’s $400m buyback following Moorebank sale

The off-market share buyback will complete by mid-May, allowing investors to pocket some of proceeds from the logistics giant’s near-$1.7bn sale of its Sydney assets.

Qube shareholders will get a share of the promised returns from Qube’s massive Moorebank asset sale.

Logistics giant Qube Holdings will buy back 141.9 million of its shares, about 7 per cent of its securities on issue.

The $400m buyback follows the completion of the near $1.7bn Moorebank Logistics Park assets sale in line with Qube’s intention to return capital to shareholders over the remainder of FY22.

Property fund manager Logos entered into the deal for Qube’s warehousing and property assets at Moorebank Park in July last year.

Qube had flagged a return of capital at its February half-year results.

The buyback opens on April 7 and closes on May 13.

The group said the capital component of the buyback price is expected to be $1.61 per share, and assumes an illustrative market price of $3.03, a discount of 7 per cent.

“We believe that the off-market buyback announced today is the most effective method to return significant value to all our shareholders and optimise our capital structure at this time,” chairman Allan Davies said.

“It enables a higher number of Qube shares to be bought back in a shorter time frame and it reduces our share count faster than an on-market buyback of Qube shares.”

Qube managing director Paul Digney said the sale coupled with Qube’s strong financial performance in achieving record underlying earnings (NPATA) in FY21, which continued into 1H FY22, had contributed to a “strong capital position”, allowing the buyback.

Qube reported higher revenues of $1.2bn and a $56.3m net profit after tax for the six months to December end, a decline of 3 per cent on the prior corresponding period.

However, underlying NPATA increased 17 per cent to $96.8m.

“In deciding this quantum we have factored into the use of Moorebank Logistics Park proceeds, related transaction costs, tax, reduction of Qube debt, and retention of capital to fund strategic growth initiatives,” Mr Davies said.

Share in Qube, which has a market cap of $5.8bn, last traded at $3.01.