CLS Holdings, a London-listed investment firm with a portfolio of offices in the UK, France and Germany, has launched a £25.5m share buyback.
The company said its stock’s discount to its portfolio’s book value has remained “at unjustified levels”, and it will make a tender offer to buy back one in 40 shares at 250p each.
CLS’ shares closed on 9 August at 208p, a discount of 41% to its current net tangible assets per share of 352.8p. The stock price has risen since the buyback was announced, reaching 215.5p as of early afternoon.
“If the share price discount persists, we will consider further buybacks in tandem with disposals so as to maintain gearing at appropriate levels,” the company said.
CLS announced the buyback alongside half-year results that showed profit dropping by almost a fifth year-on-year to £203m, but a 7.4% rise in EPRA earnings per share at 5.8p.
It said it was reducing its acquisition activity due to “market uncertainty” and would aim to announce disposals during the second half of the year.
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