Liquidity
The Boards are aware that it is difficult for investors to sell VCT shares in the market at or close to net asset value. To counter this, each Board’s current intention is to continue with its existing buy-back policy, with the objective of maintaining the discount to NAV at which the Shares trade at 10% or less. The Shares in each of the Companies are currently trading, on a mid-market basis, at discounts, to the latest published NAV ranging between approximately 8.9% and 10.4%.
The target discount will generally use the Company’s NAV latest published NAV. However, if any Board, in consultation with Matrix, considers that there has been a material movement in the Company’s NAV from the latest announced figure, that Board will apply this target discount to its best estimate of the current NA, and announce this NAV before such buy-backs are undertaken.
The Boards are aware of the importance to some Shareholders of a means of exit from these VCTs and believe such a policy addresses this. Share buy-backs will, however, be subject to:
(i) The relevant Company having available reserves, liquidity and Shareholder authorities; and
(ii) Legislation and regulation applicable from time to time.
