Honeycomb Investment Trust has launched a share buyback programme as part of an attempt to reduce its discount to net asset value (NAV).
The alternative finance-focused investment trust is currently trading on a discount to NAV of 25 per cent.
Its buyback programme will operate until 31 August 2021 and the maximum number of ordinary shares that can be purchased is 5,583,762 at a minimum of £0.01 each.
The investment company has 39,449,919 ordinary shares in issue, of which 2,935,000 are held in treasury.
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“The board believes that implementation of an active share price discount management strategy through this buyback programme works in the best interest of the company’s shareholders and will be value accretive to the company,” the stock market update said.
It was revealed last week that Honeycomb Investment Trust is discussing a possible merger with Pollen Street Secured Lending (PSSL), to create the largest listed investment trust dedicated to the specialty finance market.
Honeycomb has already won the support of its largest shareholders – Quilter Investors, Standard Life Aberdeen, Thesis Asset Management and AXA Investment Managers – who agreed that a merger “would be in the best long-term interests of both companies and their respective shareholders.”
The merged company would have combined investment assets of approximately £1.5bn.
Both are currently managed by Pollen Street Capital and are trading on large discounts to NAV.