Digital 9 warns of valuation slide, shares fall

The London-listed trust said that according to an ongoing review of the portfolio, the aggregate valuation as at 30 June was likely to be "materially" below the previous valuation on 31 December 2023.

As a result, net asset value was likely to be around 45p a share, well below December’s 79.3p per share.

Digital 9 attributed a "major part" of the reduction in NAV to a "re-assessment of the assumptions relating to the availability of finance for underlying portfolio companies" and that impact on the firms’ growth outcomes.

It also noted that the valuation process had yet to be completed, which could result in further changes.

As at 1015 BST, shares in Digital 9 had fallen 13% to 17.97p.

Digital 9, which focuses on tech infrastructure such as data centres and fibre optic cables, is currently being wound down.

The move was proposed in January following a strategic review and consultations with investors. The board said a managed wind-down was in the best of interests of shareholders after the share price had plunged and the discount to NAV slid to 76%.

In March, 99.9% of shareholders backed the proposal. Assets are now being sold off "in an orderly manner" with capital eturned to shareholders.

Digital 9 said on Friday that it had received non-binding offers for certain assets, with a number of preferred bidders going through the second phase on the sales processes.