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LONDON - Bellevue Healthcare Trust PLC announced on Wednesday the implementation of a zero discount policy aimed at aligning the company’s share price with its net asset value (NAV) during normal market conditions. This strategic move will involve the repurchase of shares when they trade below NAV and the issuance or sale of treasury shares when they trade at or above NAV.
The initiative is designed to protect shareholders from significant discounts to NAV while also facilitating the growth of the company through share issuance at opportune times. The Board of Bellevue Healthcare Trust believes this policy will serve the best interests of shareholders by offering the ability to sell shares at or near NAV any trading day, providing year-round liquidity, which contrasts with the current annual redemption facility.
The annual redemption facility previously allowed shareholders to redeem shares once a year at a fixed point, subject to the Board’s discretion. However, this facility did not effectively control discounts throughout the year. The new zero discount policy is expected to provide more consistent control over the discount to NAV, enhance shareholders’ ability to exit their investment at a known price within a shorter timeframe, and allow for daily management of their positions.
The decision comes after the company’s annual general meeting today, where shareholders granted the authority to repurchase up to 36,246,425 shares, representing 14.99% of the company’s issued share capital excluding treasury shares. The Board has indicated its readiness to seek additional buyback authority as needed.
Bellevue Healthcare Trust’s adoption of the zero discount policy reflects a proactive approach to shareholder value and market dynamics. This information is based on a press release statement.
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