Foresight Environmental Infrastructure (FGEN) has announced a £10m increase to its ongoing share repurchase programme, taking the total maximum consideration to £30m. The original £20m programme, launched in August 2024, is now largely complete. The extension will be funded from the company’s own resources and is consistent with FGEN’s stated capital allocation policy.
The buyback will continue to be executed under the authority granted at the 2024 AGM, which allows the company to repurchase up to 14.99% of its issued share capital. That authority runs until the next AGM in September 2025, and the board may seek to renew it to allow further flexibility.
FGEN says the repurchase price will not exceed the higher of 105% of the average middle market price over the prior five business days, or the higher of the last and highest independent bid on the LSE. Purchases may exceed 25% of average daily trading volume, in line with relevant UK regulations.
Any shares bought back will be either cancelled or held in treasury and FGEN’s board retains full discretion over the programme and notes there is no guarantee that shares will be repurchased in full.
[QD comment MR: The decision to extend FGEN’s repurchase programme by £10m makes a lot of sense in our view. We think that the current c 34% discount to NAV is unjustified and these repurchases are not only very NAV-accretive for remaining shareholders but also underpin the board’s confidence in the NAV.]
