NextEnergy Solar Fund says it is shifting the way that its fee is calculated from being based entirely on NAV to being based on 50% NAV and 50% market cap. This is a model that has been adopted by others in the renewable energy sector.
The fee remains 1% on the first £200m, 0.9% on the next £100m, and 0.8% on the balance. However, the shift should save about £600k per annum, reducing the fee by 13% (based on the current share price).
The board is working with its advisers to assess various options aimed at improving shareholder value. The board will consult with major shareholders on certain options that it is considering before making any definitive proposals.
The board will set out progress made and, if appropriate, the proposed plans and/or actions which are aimed at improving shareholder value, in the circular to be sent to all shareholders convening the AGM, which will be held in the latter half of August.
The business of the AGM will also include a discontinuation resolution, due to the company’s ordinary shares trading at an average discount of over 10% to the company’s NAV over financial year.
[The fee cut is good news, although it could have gone further and been based 100% on the lower of market cap and NAV. We await the outcome of the review with interest. We don’t see a good case for discontinuation.]
NESF : NextEnergy Solar cuts fees
