The trust has decided to offer shareholders a tender offer in the fourth quarter, after the vote, which will be 10-15% of the size of the company. Unusually the tender size will be determined by the average of the discount to net asset value (NAV) over the previous 12 months.
However, there are some conditions. If the discount over the previous 12 months is 9% there will be no buyback at all. If the discount is more than 15%, then the buyback will be limited to 15% and anywhere between these two limits (10-15%) it will be that amount in size.
The price of the tender offer will be priced at 99% of formula net asset value at time the tender offer is made.
“The new tender offer structure is, we believe, the first of its kind,” said Nick Wilson, chairman of Qatar Investment Fund plc.
At the end of March QIF shares were trading at a 17.2% discount to NAV, which was $1.4924 (net of dividend) after a flat performance during the first quarter. The fund’s benchmark, the Qatar Exchange Index, was down 4.7%.over the same period.
