Syncona launches £40m share buyback programme
According to data from the Association of Investment Companies, the trust, which invests in a portfolio of life science companies and holds £1.2bn in assets, is currently trading at a 40% discount.
In a stock exchange notice on Friday (29 September), the board said the decision had been taken following capital allocation across the portfolio and pipeline, reflecting its material discount to NAV.
«The board believes that the current share price materially undervalues Syncona's portfolio and its prospects, and that the shares represent a compelling and unique investment opportunity,» it said.
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The board added that the capital allocated to the buyback does not impact planned investment into the trust's investment pipeline over the next 24 months.
According to data from the Association of Investment Companies, the trust, which invests in a portfolio of life science companies and holds £1.2bn in assets, is currently trading at a 40% discount.
Melanie Gee, chair of Syncona, said: «The board of Syncona has a high level of confidence in our portfolio and its valuation — this is reflected in our decision to commence a buyback.
»We believe that purchasing up to £40m of shares allows us to strike the right balance between continuing to focus capital allocation on our maturing portfolio and a share buyback given the material discount to NAV at which the shares trade."
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As at the end of June, Syncona's capital pool was £613.1m. Since then, the trust has deployed £34.2m, taking total deployment across the portfolio in this financial year to £58.6m.
SYNC
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