Payce Consolidated Buyback Greenlit

Payce Consolidated founder and chief executive Brian Boyd has received approval to proceed with a buyout of the $240 million Sydney residential developer.

According to the Australian Financial Review, more than 99% of eligible shareholders voted in favour of the buyback of one-third of Payce's issued ordinary shares during the general meeting earlier this week.

Speaking to the Australian Financial Review, Mr Boyd said that shareholders would still have to decide if they want to take part in the buyback.

"Shareholders have complete freedom to decide whether or not to participate in the buyback," Mr Boyd said.

[urbanRelatedPost][/urbanRelatedPost]"As a shareholder, you will have a clear choice between an ordinary voting share with no certainty as to dividends or a cash payment of $2.30 and non-voting preference share with preferred rights to dividends and restrictions placed on Payce if dividends are not paid."In December 2014 a 70.4% buyback, worth an estimated $150 million, was put forward and rejected by the Australian Securities and Investment Commission.

In a revised offer in April, shareholders were offered two separate payouts of 80 cents an ordinary share plus an additional 70 cents a share representing a cash payment per share of $2.30, up from the original $1.50 per share. There will also be a separate 'preference share' issued at $7.50.

The buyback start date starts May 12, 2015.