31st Jan 2024 09:48
European Opportunities Trust PLC - managed by Devon Equity Management Ltd and investing in European companies offering capital growth - Says tender offer for its share buyback has been "taken up in full". In line with the original November announcement, European Opportunities will purchase back 25%, or 24.1 million of its shares in issue at a price of 918.0734 pence each. Once the remaining conditions of the repurchase agreement have been met, Singer Capital Markets Securities Ltd, a UK-focused investment bank, will purchase the 24.1 million shares, and will then sell the purchased shares to the company at the tender price. The tender price represents 98% of the net asset value per share at close of the calculation date, and the company says that the 2% discount will result in a NAV uplift of around 0.7% per share. 38% of the company's registered shareholders participated in the offer. European Opportunities expects proceeds to be paid on February 5 to shareholders.
European Opportunities Chair Matthew Dobbs said: "We are pleased to see that the company's tender offer has been taken up in full by a range of both retail and institutional investors. As a sizeable trust, we have been able to offer a 25% tender and still retain sufficient scale to be competitive in an environment where the minimum bar for assets and liquidity continues to increase. We note the total of validly tendered ordinary shares as a percentage of issued share capital is in line with similar offers in recent years and reflects the opportunity to redeem holdings at a profit to the current share price, at a time when the entire investment trust sector is trading at a discount."
Current stock price: 873.94 pence per share, down 1.3% on Wednesday morning.
12-month change: up 18%
By Hugh Cameron, Alliance News reporter
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