|
Fidelity Emerging Markets Ltd on Tuesday said it has agreed to buy back a 25.7% stake held by Strathclyde Pension Fund. The investment fund focused on high-growth emerging markets within Africa, South Asia, Latin America, and Europe said it will repurchase the 16.4 million participating preference shares held by Strathclyde at a discount of 14% to the closing net asset value two days before the completion date of the purchase. Fidelity said all of the Strathclyde shares will be cancelled following the repurchase. Due to the size of Strathclyde’s holding, Fidelity said the repurchase requires approval at an extraordinary general meeting. The firm said it will set out further details of the repurchase and give notice of an EGM to seek approval in due course. It expects the repurchase to complete in early November. ‘Major shareholders’ have indicated that they are supportive of the repurchase, Fidelity added. It expects the repurchase to result in an uplift to NAV per share of around 4%. ‘Assuming the repurchase is approved and effected, the board considers that the costs of running the company should remain competitive as compared to other closed-ended investment companies within the Association of Investment Companies‘ global emerging markets sector,’ Fidelity noted. The company reaffirmed its ‘proactive approach’ to buying back shares, and said it is prepared to do so that the discount to net asset value at which its shares trade may be kept in single digits. Shares in Fidelity Emerging Markets were up 0.3% at 857.22 pence in London on Tuesday morning. The fund’s NAV currently stands at 946.73p, so a 14% discount to this would be 795.25p. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
