Here's a fairly direct route to narrowing the discount to net asset value seen by most investment and infrastructure funds in the current lacklustre market.
Atrato Onsite Energy PLC (LSE:ROOF), which designs, finances, installs and maintains rooftop and ground-mounted solar systems, has decided to sell up lock, stock and barrel and liquidate the company.
The shares surged by 20% in early trading and after the announcement of the deal, which will net £218.7 million, the bulk of which will be handed back to investors.
The buyer is a joint venture company owned by Brookfield and RAIM Apollo.
The proposed sale price represents a 25% premium to the company’s last closing share price of 64.0 pence and a 19.6% premium to the three-month average.
Atrato’s board decided to sell the portfolio to maximise shareholder value, citing consistent feedback from shareholders and wide share price discounts in the investment trust sector.
The sale, which requires shareholder approval, will be followed by the company’s voluntary liquidation, with an initial distribution of assets expected in early 2025.
The stock was market 12.51p higher to 76.51p.