Bluefield Solar Income Fund Ltd on Thursday said it will launch a £20 million buyback to remedy the stock’s ‘excessive discount’, although trading remains ‘robust’.
The Guernsey-based income fund, which focuses on UK-based renewable energy assets, said its net asset value at December 31 was 136.0 pence per share, down from 139.7 pence at June 30.
Shares in Bluefield Solar were trading 3.6% higher at 102.60p on Thursday morning in London.
Also on Thursday, Bluefield Solar said it has allocated £20 million to repurchase shares, and intends to commence buybacks following the release of its half-year results on February 28.
Bluefield explained that adjusting for the recently declared 2.20p first interim dividend, the stock’s Wednesday closing price of 99p represents a 26% ‘excessive discount’ to its net asset value.
The company then reassured shareholders that ‘[its] operations remain robust, trading conditions are attractive, and the board expects this year’s dividend to be approximately two times covered’.
Moreover, Bluefield said it expects any share buybacks to be accretive to its NAV per share.
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