24 January 2017
ALLIANCE TRUST PLC
Update on Share Buybacks
In its announcement of 15th December 2016, the Board of Alliance Trust PLC (the "Company") stated its intention to introduce a more proactive approach to share buybacks, reflecting its determination to narrow materially in short order the discount to Net Asset Value ("NAV") at which the Company's Ordinary Shares trade. Since that announcement, the Company has repurchased over 30.5m Ordinary Shares (representing almost 6.0 per cent. of the Company's issued share capital as at the time of the announcement) and the discount has narrowed materially to approximately 5.0 per cent. of NAV. The Company's shares have traded at around this level of discount on a consistent basis for a number of weeks, and the discount now stands more in line with the Company's immediate peer group (with the average discount for the Global subsector standing at 5.5 per cent.*).
While providing this update on buyback activity, the Board notes that any beneficial shareholder holding over 10 per cent. of the Company's issued share capital is treated as a "related party" for the purposes of the Listing Rules. Related parties are unable to participate in share buybacks in the same manner as other shareholders without prior approval from independent shareholders at a general meeting of the Company.
In anticipation of enquiries at the Company's investor forums commencing this week, and having regard to recent press and analyst commentary on the subject, the Board confirms it would, if requested, propose the requisite resolution to provide a related party with the ability to participate in the Company's share buybacks at or around the discount level that has been available to other shareholders.
*Source: Morningstar as at 23 January 2017, with debt at market cum income
Alliance Trust PLC
Lord Smith of Kelvin (Chairman)
Gregor Stewart (Deputy Chairman)
|+ 44 (0) 1382 321000|
Canaccord Genuity (Financial Adviser)
Andrew 'Z' Zychowski
|+ 44 (0) 20 7523 8000|
|+ 44 (0) 20 7353 4200|