Pantheon International launches £150m tender offer as part of £200m share buyback scheme
The closing date is expected to be 17 October 2023, with strike price announced on 18 October and settlement on 26 October.
In a stock exchange notice today (25 September), the board said the tender offer would be undertaken via a reverse auction, as part of the buyback programme announced on 3 August, which it is carrying out during the current financial year to 31 May 2024.
Since then, the trust has already bought back over £7.3m of shares, but the board said the tender offer would ensure all shareholders have the opportunity to obtain liquidity.
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Shareholders who wish to participate must specify a minimum price to sell some or all of their shares, with price levels set between 280p and 315p in 2.5p increments, with the strike price being the lowest price at which PIN is able to acquire £150m of shares.
According to Peel Hunt, the upper end of the pricing range represents a 31% discount to the trust's net asset value as of the end of August 2023.
The closing date is expected to be 17 October 2023, with strike price announced on 18 October and settlement on 26 October.
In a research note note, Peel Hunt analyst Anthony Leatham said that given the current run rate of buyback activity, «it was not clear» how successful PIN would be in meeting its objective of up to £200m buyback in FY24, but noted the tender offer «potentially accelerates the buyback process».
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In a separate note, Winterflood commended PIN's board for their willingness to «put their money where their valuations are», which the broker argued demonstrates the virtue of board independence in «aligning
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