4th Jun 2024 10:00
(Alliance News) - Octopus Renewables Infrastructure Trust PLC on Tuesday said it will seek permission to initiate a new share buyback programme, aimed at closing the discount of the share price to net asset value.
The London-based investment company, focused on renewable energy assets across Europe and Australia, said it will initiate a share buyback programme with an initial tranche worth up to GBP10 million.
During last year's annual meeting, the board secured approval from shareholders to repurchase up to 15% of the company's shares. At the next meeting on June 19, it will seek a renewal of this authority with repurchases following thereafter.
The buyback will complement Octopus's capital recycling programme, which has seen the GBP92 million sale of two assets in Poland since launching last year. This boosted net asset value by 2.8 pence per share.
Octopus further terminated an option to acquire 175 megawatts of ready-to-build solar projects in Spain, exiting above the holding value to realise a net gain of GBP3.0 million over the GBP1.7 million initial deposit.
"To date the proceeds of these asset disposals have been used by the company to pay down short-term borrowings. However, the board notes the significant discount at which the company's shares are currently trading compared to their net asset value and believes...that the current share price does not accurately reflect the value of the company's portfolio," Octopus said.
Octopus Renewables shares were up 1.0% to 73.00 pence each in London on Tuesday morning. NAV per share on December 31 was 106.04p.
By Elijah Dale, Alliance News reporter
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