Atrato Onsite to sell solar portfolio, seek voluntary liquidation
Atrato Onsite Energy
76.80p
13:24 03/10/24
Atrato Onsite Energy announced on Thursday that it has agreed to sell its entire portfolio of solar assets for £218.7m to a joint venture between Brookfield and RAIM Apollo.
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The London-listed firm said the proposed sale was conditional upon shareholder approval for a change in the company's investment objective and policy, as it would fall outside the scope of its current mandate.
Following completion of the sale, the company said it intended to seek voluntary liquidation, with plans to return net assets to shareholders as soon as practicable.
An initial distribution of assets was expected in February.
The board said the decision to sell the portfolio was driven by persistently wide share price discounts, the company's subscale nature, and consistent feedback from shareholders advocating for the sale.
It said the sale price represented a premium of 25% to the closing share price of 64p on 2 October, and a 19.6% premium to the three-month volume-weighted average price of 66.9p per share.
The company's most recent portfolio valuation, calculated as of 31 March, stood at 90p per share, with subsequent dividend payments reducing the net asset value to 82.7p per share.
That represented a discount of 8.1% to the March net asset value.
Shareholders would be asked to approve the new investment policy and the sale, with liquidation expected to follow shortly thereafter.
“The board was very pleased with the interest shown in the company,” said chair Juliet Davenport.
“After a detailed analysis, the Board determined that a sale of the portfolio to the consortium was the best means of maximising shareholder value against a backdrop of persistently wide share price discounts in the investment trust sector, the subscale nature of the company and consistent shareholder feedback to sell the portfolio.
“Therefore, the board unanimously considers the Proposals to be in the best interests of the company and its shareholders as a whole and unanimously recommends that shareholders vote in favour of the change of investment objective and policy resolution at the general meeting.”
At 1121 BST, shares in Atrato Onsite Energy were up 20.31% at 77p.
Reporting by Josh White for Sharecast.com.