Bluefield Solar launches £20m buyback scheme due to 'weak' share price

investmentweek.co.uk:

The buyback scheme is expected to commence after the publication of the interim results and 'while the company’s shares continue to trade at an excessive discount to NAV'.

As per authority granted at its annual general meeting in November 2023, the trust will return value to investors by purchasing its own shares for up to 14.99% of its issued share capital.

The programme will be funded via a combination of available liquidity, excess operating cash flows from the portfolio and proceeds from any asset sales which the trust has already commenced, it explained in a stock exchange notice today (15 February).

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BSIF's board said the trust keeps its capital allocation policy under «regular review» to evaluate the merits of further investment, the management of debt and returning value to shareholders.

«As part of this review, and in the context of addressing what the board views as the excessive discount at which the company's shares currently trade relative to the underlying net asset value, the board announces its intention to commence a share buyback programme. In the first instance it has allocated £20m for the purchase of its own shares,» it explained.

According to data from the Association of Investment Companies, BSIF is currently trading at a 26.8% discount.

The trust's interim results for the half year to 31 December 2023 will be released on 28 February and, until then, BSIF said it will remain in a «closed period» and will be unable to buy back its own shares.

The buyback scheme is expected to commence after the publication of the interim results and «while the company's shares continue to trade at an excessive discount to NAV».