Honeycomb to sweeten value with share buybacks
Honeycomb Investment Trust has announced an immediate share buyback to boost the alternative finance-focused fund’s value for shareholders.
Its board has a policy to consider buybacks when its ordinary shares trade at a discount to net asset value (NAV) of more than five per cent.
The investment trust is currently trading at a discount to NAV of 15.4 per cent.
Shares will be purchased at £0.01 each and the programme is expected to end no later than 29 April.
Read more: Quilter expects direct lending to “thrive” after Honeycomb deal
“The board believes that at the current price the company’s ordinary shares offer significant value and the buyback programme will be value accretive to shareholders,” Honeycomb said in a stock market update.
It was revealed last month that London-listed Honeycomb will buy Pollen Street in an all-share deal that values the investment manager at £285m.
The new entity will move from being an investment trust to a commercial company. However, it will continue to invest in direct lending opportunities, said Honeycomb’s announcement on the London Stock Exchange.
Shareholders are due to be sent information about when and how to vote on the acquisition, which is expected to complete during the second quarter of 2022.
Read more: Honeycomb increased NAV last year