Announcement of proposed share buy-back
The Board of Keystone Investment Trust plc (the ‘Company’ or ‘Keystone’) announces that it proposes to buy back, in the market, up to 1,200,000 of its own shares (the ‘Share Buy-back’).
The Company’s investment manager, James Goldstone, views the portfolio as consisting largely of companies whose shares remain undervalued by the market, but which can generate attractive returns from their current levels of operating performance, with potential upside should these companies achieve earnings growth and/or a market re-rating of their shares. The Board shares this view and, furthermore, notes that as the Company’s own shares trade at a significant discount to their NAV, share buy-backs offer the opportunity to purchase, at a discount, exposure to a portfolio of quality investments that are themselves undervalued.
The Board has determined that the Company will buy back up to 1,200,000 shares (8.9% of the issued share capital), as and when the Board deems this to be in the best interests of the Company and otherwise in accordance with the conditions set out in the authority to make market purchases conferred at the Company’s last AGM.
The Board retains absolute discretion as to the execution, pricing and timing of the Share Buy-back. There should be no presumption that the Share Buy-back will form part of an ongoing programme. Any shares bought back will be held in treasury; for the avoidance of doubt the Company only has shareholder authority to reissue shares from treasury at a premium to NAV.
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