Pacific Current outlines plan for share buyback
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The news: Asset manager Pacific Current Group will seek shareholder approval for an off-market share buyback to return surplus capital to shareholders after recent and proposed asset sales.
The numbers: The group plans to return up to $275 million via the share buyback, but said the size may differ depending on its circumstances prior to an extraordinary general meeting that is likely to be scheduled in July.
Pacific Current last traded at $10.09 and over the past 12 months its share price has risen 36.54%.
The context: Last month, Pacific Current sold its 4% stake in listed fund manager GQG for $257.3 million in a discounted block trade deal with institutional investors. The sale culminated from its long-stated objective to reduce equity market risk exposure in its portfolio, with the asset manager noting that owning listed securities over the long-term is beyond its investment mandate.
The group has also proposed selling investments in Proterra Investment Partners, Cordillera Investment Partners and Avante Capital Partners. The asset sales will generate total cash proceeds of $370 million, with part of this being returned to shareholders via the buyback.
The source: ASX announcement
