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LONDON - VH Global Energy Infrastructure plc (ENRG) announced on Wednesday plans to implement an asset realisation strategy aimed at selling all portfolio assets and returning capital to shareholders within three years.
The company has published a circular to shareholders detailing the proposed strategy, which requires approval at a general meeting scheduled for August 28, 2025. The plan involves adopting a new investment objective and policy to replace existing ones, reflecting the shift from making new investments to realising existing assets.
Under the proposed strategy, Victory Hill Capital Partners (WA:CPAP) LLP will continue as the company’s alternative investment fund manager but with a revised fee structure designed to align its interests with shareholders. The new arrangement includes a performance fee that will only be payable after the entire portfolio has been sold and shareholders have received returns above a specified hurdle rate.
The board cited shareholder frustration with the company’s share price discount to net asset value (NAV) as a key reason for the strategy. As of May 22, 2025, the ordinary shares traded at a 44% discount to NAV.
"The majority of shareholders are as frustrated as the board with the company’s share price discount to NAV," the company stated in the circular. "The discount issues are sector-wide and shareholders are understandably seeking capital returns at the highest achievable value, and in as short a time frame as possible."
The company plans to continue paying quarterly dividends during the realisation period, though it will not maintain its progressive dividend policy. Cash will be returned to shareholders as portfolio assets are sold, with the board seeking to do so in an efficient and tax-conscious manner.
The directors, who collectively hold approximately 0.09% of the company’s issued share capital, intend to vote in favor of the resolutions.
The announcement was based on a press release statement from the company.
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