23rd May 2025 10:20
(Alliance News) - VH Global Energy Infrastructure PLC shares climbed on Friday as it said it plans to start an "asset realisation strategy" in a change to its investment policy after engaging with shareholders.
Shares in VH Global were up 11% to 64.42 pence in London on Friday morning.
The London-based investor in energy infrastructure said it has engaged with a "significant proportion" of shareholders over six months, with the majority expressing a desire to return capital through a sale of the company's portfolio of assets.
"Shareholders were rightly cognisant of the balance between expedited returns of capital and damaging the long-term value of the portfolio through untimely sales," the investor noted.
VH Global said the strategy will involve mandating its fund manager, Victory Hill Capital Partners LLP, to sell the portfolio "in a timely manner with a view to maximising value".
The firm said some assets are in a better position to be sold than others, with some requiring further management "before they can be sold at a value that the board and Victory Hill believe would be acceptable to shareholders".
Despite this, the company said it expects the strategy to be completed in no more than three years, at which point the company would delist and be liquidated.
"Cash will be returned to shareholders as and when the company holds enough cash from the sale of portfolio assets to justify the cost of effecting a return to shareholders," VH Global said.
The board said it has agreed in principle to revise fees paid to Victory Hill as part of the strategy.
The realisation requires a change in its investment policy. It will need shareholder approval for this at a general meeting, to be held in August.
VH Global also said that its 10 megawatt UK flexible power generation, carbon capture and reuse asset has achieved its first offtake of liquefied carbon dioxide to Buse Gases Ltd.
The company said the offtake deliveries have begun under a 15-year contract with Buse.
The project also benefits from a 15-year fixed-term power and gas supply agreement with Swiss energy utility Axpo Holding AG.
"Together, these arrangements are providing the company with long-term, predictable, inflation-linked revenues," VH Global said.
The project is undergoing final commissioning and is expected to be fully operational by the end of June.
By Michael Hennessey, Alliance News reporter
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