Pacific Horizon sets conditional tender offer tied to performance

Published 16/04/2025, 09:32
Pacific Horizon sets conditional tender offer tied to performance

LONDON - Pacific Horizon Investment Trust PLC (LSE:PHI), a UK-based investment trust, has announced plans for a performance-triggered conditional tender offer, potentially allowing shareholders to sell back up to 25% of the company’s issued share capital. The tender offer, announced on April 16, 2025, is contingent on the company’s net asset value (NAV) total return underperforming the MSCI All Country Asia Ex Japan Index total return in sterling over a five-year period ending March 31, 2030.

The Board’s decision to introduce the tender offer reflects its confidence in the Investment Manager’s ability to outperform the reference index, as demonstrated over the past five years leading up to March 31, 2025, where the company’s NAV total return exceeded the Reference Index by 74.5%, according to Morningstar and MSCI data. However, the Board, in consultation with the Investment Manager, has resolved to provide this option as a means for shareholders to realize a portion of their investment at a price close to NAV if the company does not maintain its performance advantage.

In addition to the tender offer, the Board will continue its practice of buying back shares when it is deemed to be in the best interest of shareholders. The overarching goal is to sustainably maintain the discount at which the company’s shares trade relative to the NAV per share in the single digits under normal market conditions.

This strategic move aims to align the interests of the Investment Manager with those of the shareholders by providing a clear, performance-based outcome for the investment strategy over the coming five-year period.

The information regarding this announcement is based on a press release statement and has been verified through independent sources. It provides shareholders and potential investors with insight into Pacific Horizon’s commitment to performance and shareholder value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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