- Board proposes orderly return of assets
- Share price rises on announcement
- Offer received for sale of debt facility
The board of Triple Point Energy Transition (TENT) has decided on an orderly return of assets and associated capital to shareholders following a third-party review into the company’s strategic direction. Notice of a general meeting to revise the investment policy and facilitate this action is expected to be posted in Q1 2024.
Reflecting the value in the underlying portfolio, which exceeded its NAV target return in the most recent full year results to 31 March 2023 (and delivered a 1.1x covered dividend yield), the share price has risen more than 16 per cent on news, and is up roughly 20 per cent since Simon Thompson initiated coverage of the company.
Like many investment companies, TENT has been impacted by insufficient liquidity and a persistently wide share price discount to the net asset value per share of its portfolio. It was around 40 per cent before the announcement. This constrained the company’s ability to raise further capital and realise the benefits of scale.
Interim results for the six months to 30 September 2023 showed NAV per share down by 4.4 per cent (now at 95.1p). The company’s resilient cash flow performance continued in the period, which has underpinned declaration of a cash covered dividend of 1.375 pence per ordinary share, payable on or around 12 January 2024 to holders of ordinary shares on the register on 22 December this year.
The company has also announced that it has received an offer in relation to the sale of the group's debt facility provided to a subsidiary of Virmati Energy for the purposes of building out a portfolio of battery storage (BESS) assets in the UK. The offer values the facility at book value and completion would allow the group to deleverage and cancel its revolving credit facility. As of 30 September, the drawn balance of the revolving credit facility was £2.4mn (£40mn available).
