(Alliance News) - Logistics Development Group PLC on Thursday proposed its second share buyback programme this year, for 20% of its issued share capital, aiming to reduce the discount to its net asset value per share.

The company has not disclosed what its NAV per share is. Logistics Development's total net assets for the six months ended May 31 was GBP110.7 million, and its market capitalisation was GBP78.5 million.

The London-based investment company said it intends to seek shareholder approval to acquire the additional shares, and it expects to limit the total consideration for the programme to GBP15 million.

Logistics Development shares were up 3.2% to 13.77 pence on Friday afternoon in London.

The share buyback programme will be conditional upon independent shareholders passing a resolution approving a waiver for the concert party to make a general offer for the shares it doesn't own.

The concert party comprises Logistics Development's investment manager and largest shareholder, DBAY Advisors Ltd, and associates acting in concert with DBAY. Logistics Development said DBAY holds 33% of it share capital.

A notice of a general meeting will be sent out in due course, the firm said.

Logistics Development launched a buyback of 140.4 million shares between February and April. The buyback was initiated following Logistics Development's disposal of its indirect interest in Greenwhitestar Acquisitions Ltd, the holding company of Eddie Stobart Ltd, The Pallet Network, iForce, Eddie Stobart Europe and The Logistics People businesses, to logistics company Culina Group Ltd.

Following the disposal, Logistics Development said trading in its shares have returned to a level which is a "significant discount" to its NAV per share. The new share buyback is intended to reduce the discount to NAV per share, and may provide an exit opportunity for shareholders who do not wish to retain their investment in the company.

The company added that it invested EUR18.5 million in Synsion TopCo Ltd, a private holding company formed by DBAY. The investment will be used by Synsion to acquire an additional stake in Paris-based digital transformation business SQLI SA at EUR44.25 per share.

The investment is expected to increase Synsion's holding in SQLI by 9% to 81%. It will initially be made by a loan, which will be converted into an 11% equity interest in Synsion.

By Jaskeet Briah; jaskeetbriah@alliancenews.com

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