Polar Capital announces tender offer and dividend policy changes

Published 14/05/2025, 07:12
Polar Capital announces tender offer and dividend policy changes

LONDON - Polar Capital Global Financials Trust plc (LSE:PCFT) has published a circular detailing a tender offer for up to 100% of its ordinary shares, excluding treasury-held shares, contingent on shareholder approval and specific continuation conditions. The announcement made today follows an initial statement on April 10, 2025, and sets up a general meeting scheduled for June 18, 2025, to vote on the matter.

The tender offer is part of the company’s five-yearly obligation, following an amendment to its articles of association in April 2020, which removed its fixed life and introduced the tender offer requirement. The board has expressed continued confidence in the investment manager’s strategy and optimism for the global financials sector’s outlook.

For the financial year ending November 30, 2024, the company reported a net asset value total return of 34.8%, slightly trailing its benchmark index, the MSCI ACWI Financials Index, which returned 36.1%. However, in the subsequent period up to April 30, 2025, the company outperformed the benchmark despite market challenges.

Polar Capital also announced a revised management fee structure effective from July 1, 2025, with a tiered fee approach and the removal of the performance fee component. Additionally, an enhanced dividend policy will be adopted, targeting a regular dividend equivalent to approximately 4% of the company’s net asset value annually, starting in the financial year commencing December 1, 2025.

The tender offer, if approved, will allow shareholders to tender some or all of their shares at a price close to the net asset value per share. The tender price will be determined on June 18, 2025, and for illustrative purposes, the price as of May 12, 2025, would have been 209.96 pence per share.

Alongside the tender offer, the board intends to facilitate a secondary placing of shares with institutional clients of Stifel Nicolaus Europe Limited, which may reduce the number of shares repurchased by the company.

The tender offer is subject to the company maintaining a minimum net asset value of approximately £200 million and a sufficient diversification of ownership to comply with the UK Listing Rules. If these conditions are not met, the board may consider liquidation proposals for the company.

The costs related to the tender offer are expected not to exceed £830,000, excluding certain additional costs, and will be capped at 1% of the net asset value per share as of the calculation date, with any excess borne by shareholders not participating in the tender offer.

This move reflects Polar Capital’s strategy to manage its capital structure actively and provide options for shareholders while aiming to enhance shareholder value. The information is based on a press release statement.

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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