LONDON (ShareCast) - (ShareCast News) - Healthcare, hospitality, lifestyle and real estate investor Symphony International Holdings announced the implementation of an ongoing buyback programme on Monday.
The London-listed firm said it has a track record of outperformance with a 22% increase in net asset value per share since the company was listed on the London Stock Exchange, against a 7.1% decline in the MSCI AC Asia Index during the same period.

It introduced annual dividends from 2014 that have seen distributions to shareholders of $0.1485 per share, it added.

"Symphony's shares continue to trade at a significant discount currently of approximately 32% to latest published NAV," the board said in a statement.

"Investments in listed securities and cash cover the share price by 1.04x, effectively meaning a negative value is being attributed to the attractive portfolio of private investments assembled by the managers."

The board said it considers a sustainably narrower discount to be one of its key objectives and, in light of the persistent share price discount to NAV, was pursuing a programme of share buybacks aimed at narrowing the discount to NAV and providing enhanced liquidity and material NAV accretion to ongoing shareholders.

"It is the company's intention to target the acquisition of at least 10% of its shares in issue, on an annual basis.

"Assuming that the company's shareholders renew the share buyback mandate at the company's AGM in April this year, and that the discount remains significant, this buyback programme is intended to continue until 31 December 2017."

At that time, the board said it intends to review the matter, and if considered appropriate, extend the programme.

"The company believes that the buyback programme is complementary to the annual dividend."

Symphony said the proposed buyback programme will be funded by the company's available cash reserves, and all ordinary shares purchased will be cancelled.

"The proposed buyback programme will be effected on behalf of the company by its broker, Numis Securities, and will commence from today."

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