QuotedData’s morning briefing 23 February 2023 – RSE, GRID, JSGI, GRIO

230124 morning

In QuotedData’s morning briefing 23 February 2023:

  • Riverstone Energy (RSE) has announced a tender offer for up to 15,047,619 of its ordinary shares, representing 35.66% of the existing shares in issue, to be purchased at a price of £10.50 per share. This price represents a premium of c.14% to the closing market price of £9.20 on 21 February 2024. The tender offer is intended to return $200m in excess capital to shareholders, with RSE holding a cash balance of $291m as of 21 February. The implementation of the tender offer is pending shareholder approval, with an extraordinary general meeting being held on 26 March to seek approval.
  • Gresham House Energy Storage Fund (GRID) has announced that the latest T-1 CM auction concluded on 20 February 2024, clearing slightly higher than expected at a price of £35.79/kW. GRID has secured additional 1-year contracts across 13 of its projects with a total derated capacity of 90.491MW. The additional contracts are expected to generate £3.2mn of additional revenue from October 2024 to September 2025, and will be reflected in the next quarterly valuation.
  • JPMorgan Japan Small Cap Growth & Income (JSGI) has announced that it will reduce its management fee. With effect from 1st April 2024, the investment management fee will be charged at the rate of 0.85% (currently 1%) per annum on the net asset value of JSGI’s portfolio up to £150 million and at the rate of 0.75% thereafter. This is estimated to reduce the management fee by nearly 12%, with the ongoing charges ratio falling to 1.05% from 1 April 2024.
  • Ground Rents Income Fund (GRIO) has sold its freehold ground rent interests in Bristol and Exeter, for a combined price of £3.45m. The assets currently generate annual rent of £113,991 and are operated by Vita Student as purpose-built student accommodation. The price represents a 4% premium to the 30 September 2023 independent valuation of £3.3m and reflects a net initial yield of 3.1%. The assets are being acquired by the company’s long leaseholder. The disposal is part of the company’s change of strategy, approved by shareholders in 2023, to realise assets in a controlled, orderly and timely manner. Further disposals are planned, with significant work ongoing to improve the liquidity of the underlying portfolio, but the company said that uncertainty relating to leasehold reform means that transactional volumes are very low across the ground rent sector. The disposal proceeds will be used to repay debt and also act as a cash reserve against possible building safety related costs and expenses.

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