Tetragon Financial Group (TFG), the £1bn hedge fund and alternative investments platform standing on a huge 69% discount to net asset value, has launched a $50m tender offer to let holders of its non-voting shares sell them between $12.75 and $14.75. The tender offer is expected to close on 3 September. The shares stand at $13.60 compared to their $40.60 NAV per share at 30 June.
James Carthew, QuotedData’s head of investment company research, said: “It says a lot that the price range for tendering shares to the latest Tetragon tender offer is lower than it was six months ago. These ‘Dutch auction’ tenders within prescribed price ranges are useless when it comes to tackling its overly large discount. They are unlikely to even give you a much higher exit price than selling in the market and only serve to enhance the NAV of ongoing shareholders.”
Rights & Issues (RIII), the £115m UK smaller companies trust run by Matthew Cable and Tim Service at Jupiter Asset Management, made a 5.4% total investment return in the first half of the year, beating the 1.8% rise in the Deutsche Smaller Companies index but trailing the FTSE All-Share’s 7.2% advance. The shares did better, delivering 9.4% as the share price discount narrowed in response to the company being able to buy back shares following shareholder approval at the annual general meeting in March. Between then and 30 June RII spent £1.7m on shares now trading 17% below net asset value.
Syncona (SYNC), the £645m life sciences fund languishing on a 38% share price discount despite a rebound in biotech markets, insisted it was “well positioned to deliver significant upside” after the portfolio flatlined in the first half with zero growth in net asset value per share. Chris Hollowood, chief executive of Syncona Investment Management, said the portfolio would see “four key value inflection points” in the second half of its financial year. In the six months to 30 June Syncona invested £24.9m in Spur Therapeutics and Resolution Therapeutics. Last October it withdrew plans for a managed wind-down and to focus on returning £250m of capital to shareholders.
