Albion Development VCT Reports NAV Changes, Plans Merger

Albion Development VCT Announces NAV Decrease

Albion Development VCT PLC, a well-regarded venture capital trust, has released recent figures reflecting a decrease in its net asset value (NAV) per share for the latest quarter. For the period ending September 30, the unaudited NAV reported stands at £137.20 million, translating to 92.27 pence per share. This figure represents a reduction of 1.33% since the previous quarter's closing on June 30.

Dividend Payments Impacting NAV

The NAV calculation accounts for a dividend distribution of 2.40 pence per share, which was paid to registered shareholders on September 30, following the record date of September 13. Moreover, after the payment of a special dividend of 3.00 pence per share on October 25 to shareholders registered on October 4, the adjusted NAV is set at 89.27 pence per share.

Share Issuance and Merger Proposal

During this quarter, Albion Development VCT engaged in the issuance of 601,452 shares under its dividend reinvestment scheme, generating a net investment totaling £542,000. Strategically, the Company has announced a proposal for a merger with Albion Enterprise VCT PLC. This merger aims to create value for shareholders through enhanced cost efficiency, a streamlined fee structure, and reduced administrative burdens. Details regarding the merger proposal have been outlined in a circular that was issued recently, with important meetings scheduled for voting on December 11 and December 19.

Investment Endeavors and Future Strategy

Albion Development VCT has actively worked on its investment activities, committing £1.373 million across six portfolio companies within this quarter. Investments spanned innovative sectors such as technology for credit assessments, artificial intelligence-powered chatbots, and virtual assistant services. Notably, the leading investment, Quantexa, a promising network analytics platform, constitutes approximately 20.3% of the firm's total NAV.

Share Buybacks and Market Conditions

In a move aligned with shareholder interests, the Company executed a buyback of 757,508 shares at a total cost of £660,000, with each share bought back at a price point of 86.72 pence. Following this transaction, all repurchased shares were canceled. The Board's strategy emphasizes controlling buybacks at about a 5% discount to NAV, contingent on prevailing market conditions.

Recent Developments and Conclusion

No significant transactions or events have occurred following the quarter's close leading up to this announcement. Shareholders and potential investors are encouraged to explore additional information regarding the financial performance and shareholder data on the Company’s official webpage, available through the Manager’s site. Albion Development VCT continues to pursue strategic decisions aimed at enhancing shareholder value in this evolving market landscape.

Frequently Asked Questions

What is the current NAV of Albion Development VCT?

The current unaudited NAV of Albion Development VCT is reported as £137.20 million, equating to 92.27 pence per share.

What dividends have been paid recently?

Albion Development VCT has paid a dividend of 2.40 pence per share, along with a special dividend of 3.00 pence per share, affecting its NAV.

What is the purpose of the merger with Albion Enterprise VCT?

The merger aims to reduce costs, simplify fee structures, and minimize administrative workload to benefit shareholders.

How much was invested in portfolio companies this quarter?

The Company invested £1.373 million across six portfolio companies in its recent quarter.

What strategy is being pursued regarding share buybacks?

Share buybacks are targeted at approximately a 5% discount to NAV, depending on the market conditions.

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