CLS Holdings PLC Conversion of UK operations to a REIT (9679W)
December 29 2021 - 8:07AM
UK Regulatory
TIDMCLI
RNS Number : 9679W
CLS Holdings PLC
29 December 2021
Release date: 29 December 2021
Embargoed until: Immediate release
CLS Holdings plc ("CLS" or the "Group")
CLS announces the conversion of its UK operations to a Real
Estate Investment Trust ("REIT")
CLS announces that it has notified Her Majesty's Revenue &
Customs ("HMRC") of the conversion of its UK operations to a UK
REIT from 1 January 2022. There is no charge payable to
convert.
As a result of the conversion, CLS will pay no UK corporation
tax on its UK property operations (rental income, gains on property
sales and sales of companies owning UK property) which fall within
the REIT regime from the 2022 financial year onwards. For the 2022
interim dividend, expected to be paid in September 2022, and for
all dividends going forward, shareholders will receive dividends
comprising two elements. The dividends will comprise a Property
Income Distribution ("PID") from the UK REIT operations and a
second element from CLS' remaining operations. The split will be
shown on the face of each dividend voucher.
As part of this process, and in accordance with HMRC guidance,
in the Notice of the 2022 Annual General Meeting (the "AGM
Notice"), shareholder approval will be sought to amend CLS'
existing articles of association (the "Current Articles") by
adopting new articles of association (the "New Articles"). The New
Articles will incorporate changes necessary for a REIT and changes
to reflect developments in law and practice since the Current
Articles were adopted in 2010. Further details on the New Articles
and the impact of the REIT provisions for both shareholders and the
Group will be set out in the AGM Notice.
CLS' controlling shareholder, Creative Value Investment Group
Limited (the investment vehicle of The Sten and Karin Mortstedt
Family and Charity Trust), has confirmed that it is supportive of
the conversion of CLS' UK operations to a REIT.
Fredrik Widlund, Chief Executive Officer of CLS, commented:
"CLS' strategy and business model remain unchanged but our
conversion of the UK business to a UK REIT will allow greater
comparability with a number of our peers. By only converting part
of our operations to a REIT, CLS retains the flexibility to
reinvest into the business to drive capital growth."
Andrew Kirkman, Chief Financial Officer of CLS, commented:
"Conversion of CLS' UK operations to a UK REIT is a logical step
at this time, particularly given the enacted increase in the rate
of UK Corporation tax from 19% to 25% from 1 April 2023. Conversion
is expected to increase EPRA Net Tangible Assets ("NTA") by around
4.5 pence and save around GBP3 million to GBP5 million annually in
UK corporation tax from 2022 onwards."
-ends-
For further information, please contact:
CLS Holdings plc
(LEI: 213800A357TKB2TD9U78)
www.clsholdings.com
Fredrik Widlund, Chief Executive Officer
Andrew Kirkman, Chief Financial Officer
+44 (0)20 7582 7766
Liberum Capital Limited
Richard Crawley
Jamie Richards
+44 (0)20 3100 2222
Panmure Gordon
Hugh Rich
+44 (0)20 7886 2733
Elm Square Advisers Limited
Jonathan Gray
+44 (0)20 7823 3695
Smithfield Consultants (Financial PR)
Alex Simmons
Rob Yates
+44 (0)20 3047 2546
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCFEIFDUEFSESE
(END) Dow Jones Newswires
December 29, 2021 08:07 ET (13:07 GMT)
Cls (LSE:CLI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Cls (LSE:CLI)
Historical Stock Chart
From Sep 2023 to Sep 2024