Utilico Emerging Markets Trust announces strategic initiatives

Published 15/08/2025, 09:52
Utilico Emerging Markets Trust announces strategic initiatives

LONDON - Utilico Emerging Markets Trust plc (UEM) announced a comprehensive suite of initiatives aimed at increasing demand for its shares and enhancing their market rating, according to a press release issued Friday.

The initiatives include a new conditional tender offer for up to 25% of the company’s issued share capital, equivalent to £126 million of UEM’s net asset value (NAV) as of July 31, 2025. This performance-related tender will be benchmarked against the MSCI Emerging Markets Total Return Index over a five-year period ending March 31, 2030.

UEM’s board also committed to continuing its share buyback program with the goal of maintaining a single-digit discount to NAV in normal market conditions. The company has repurchased 28.2 million shares for £62.2 million over the three financial years ended March 31, 2025.

The trust plans to maintain its progressive dividend policy, which has seen annual increases since 2016. For the year ended March 31, 2025, UEM paid a dividend of 9.125 pence per share, totaling £17.0 million in distributions.

Additionally, UEM proposes advancing its 2026 continuation vote to coincide with its 2025 Annual General Meeting, with subsequent votes occurring at five-year intervals thereafter, subject to shareholder approval.

The company has scheduled a General Meeting for September 16, 2025, at The Royal Society of Chemistry in London, where shareholders will vote on amending the existing articles to enable the advancement of the continuation vote and, if approved, on the continuation of the company as presently constituted.

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