The Swiss alternative investment company Altin has launched a share buyback programme.
This programme is part of a wider set of discount reduction measures put in place by Altin’s board of directors, which is determined to maintain the share price within close range of net asset value.
The share buyback should enable Altin’s stock market price to come closer to the NAV.
The Altin share price has been trading at an average discount of 24.96 per cent to its NAV during the first semester of 2010. The board of directors believes this level of discount is unjustified at present in view of Altin’s good historical track record, its highly liquid portfolio of hedge funds (over 90 per cent of Altin’s underlying investments offer redemption frequency terms of three months or less), its diversified portfolio in ten investment strategies and its policy of full and quarterly disclosure of all underlying holdings.
The board has therefore decided to launch a new share buyback programme to acquire up to ten per cent of Altin’s share capital with the objective of reducing the discount of the share price to NAV.
To implement this, a second trading line for Altin shares will be opened on the SIX Swiss Exchange on 27 July 2010 and shall be maintained until the end of December 2010, at the latest. Altin will be the exclusive buyer on this trading line and will repurchase its own shares with the objective of subsequently reducing its share capital.
For shares purchased on the second trading line, Swiss federal withholding tax of 35 per cent on the difference between the repurchase price of the Altin registered share and its nominal value of CHF17 will be deducted from the repurchase price.
Since Altin listed on the London Stock Exchange on 31 December 2001, its shares have traded at a premium over NAV on a number of periods including, for example in July 2007 (+6.84 per cent), November 2007 (+4.93 per cent), January 2008 (+10.69 per cent), March 2008 (+3.72 per cent) and April 2008 (+1.46 per cent).