13th Mar 2019 18:22
LONDON (Alliance News) - Phronimos Capital LLC urged Polo Resources after the market close on Wednesday to respond to a proposal to return capital to shareholders after receiving further support for its stance.
Phronimos - an investment advisory firm - announced in mid-February it had approached Polo to return funds to investors through a tender offer of between 10 pence and 12p per share amid a "persistently large discount" of the share price at Polo to its net asset value.
Polo is a natural resources investment firm which holds stake in various gold, oil & gas, coal, iron ore and phosphate projects across five continents.
On Wednesday, Phronimos explained it had "heard from numerous other Polo shareholders supportive of our cause" since its initial approach. As a result, the "concerned shareholder group has grown significantly."
"We believe there will be broad shareholder support for a substantial cash distribution or share buyback if the proposal to return capital were put to a vote at a requisitioned meeting of the shareholders of Polo," Phronimos added in a statement.
Shares in Polo closed 4.2% higher at 4.68p on Wednesday. In December, Polo reported its net asset value per share stood at 15.73p per share.
Related Shares:
POL.L