LONDON - Aurora UK Alpha PLC (the "Company") has announced the cancellation of 89,096 shares as a result of a clawback provision in its agreement with Phoenix Asset Management Partners Limited ("Phoenix"), the company’s investment manager. The shares were returned to the Company and subsequently cancelled, with no impact on the Company’s published net asset value (NAV).
The performance-based fee structure between Aurora UK Alpha and Phoenix dictates that the investment manager is compensated through the issuance of shares if the Company’s NAV outperforms the FTSE All-Share Index (total return). These shares are subject to a three-year clawback period. If the outperformance is reversed by the third anniversary, the investment manager must return some or all of the issued shares. In this instance, the reversal of outperformance led to the clawback of shares issued for the year ended December 31, 2021.
The cancellation of these shares has already been accounted for in the daily NAV calculation, ensuring that there is no change to the Company’s published NAV. The formalities of the cancellation will be completed with the Registrar of Companies in due course.
As a result of this transaction, Aurora UK Alpha’s issued share capital now stands at 114,572,742 ordinary shares, each with one voting right. The Company has confirmed that it does not hold any ordinary shares in Treasury.
The total number of voting rights in the Company is now 114,572,742. Shareholders may use this figure as the denominator for the calculations by which they are required to notify their interest, or a change to their interest, in the Company, in accordance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
This share cancellation reflects the Company’s adherence to its performance-based fee agreement with its investment manager and demonstrates the accountability mechanisms in place for investment performance.
The information in this article is based on a press release statement by Aurora UK Alpha PLC.
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