Digital 9 Infrastructure PLC (LSE:DGI9) shares rallied 10% on Monday after it revealed it would be winding itself down.
Management believes it is in the best interest of shareholders to begin the sale of its assets and start to bring the investment company to a close.
Charlotte Valeur, interim independent chair of D9, said: "Throughout the strategic review process, the board's primary objective has always been to maximise shareholder value going forward.
“We have ultimately concluded that a Managed Wind-Down of the company is likely the best route to achieve this objective and seek to address the discount to NAV that impacts our shareholders.”
Shares in the London-listed firm are believed to trade at around a 75% discount to its NAV, Hargreaves Lansdown data showed.
Digital 9 will begin an immediate sales process for its wholly owned assets (Aqua Comms, EMIC-1, Elio Networks and SeaEdge UK1) before an auction later this year.
Arqiva, a telecom company D9 is the majority shareholder in, will have its sale deferred as management believes it is taking longer than expected to extract the full value out of the investment.
The board will instead continue to look at all other options including capital market alternatives.