Monash Investors has announced an initiative aimed at closing the persistent discount in shares of the MA1 listed investment company. Monash will undertake a simultaneous equal access buy back and share purchase plan.
The buy back will be conducted at a 5% discount to NTA and will be eligible for any shareholder at the record date Friday 3rd of August. Based on the latest disclosure the NTA sits above $1.00, so at a 5% discount, the buyback price is around 95 cents which compares to the latest trade at 84 cents. At the same time, Monash is doing an SPP also at a 5% discount to NTA with any shortfall available for placement. MA1 has flagged its intention to repeat this in the future. By regularly combining two well understood mechanisms, Monash hopes to create an additional source of certainty and liquidity for MA1 shareholders.
If you want to find out more about this initiative please click here
Monash was established in 2012 by Simon Shields and Shane Fitzgerald. The Monash strategy is benchmark unaware, style and stock size agnostic, and is both long and short.