Buy backs

[sinterklaas]

Mobeus, as well as announcing they’ll have an offer this Autumn, made a specific announcement re: buyback discount level, narrowing their target to 5% off NAV:

https://www.investegate.co.uk/mobeus-in ... 00050401H/

[james188]

Yes, I was pleased to see that the Mobeus VCTs have moved from a 10% discount to 5%.

Given that they are all seeking further funds, I am also hoping that Income & Growth and Mobeus 4 reinstate their DRIS programmes (the fact that they had enough cash was the main reason given for discontinuing those programmes) and that the other two Mobeus VCTs reconsider their policy towards having a DRIS.

[127tolmers]

Good to see Mobeus VCT family finally removing the anomaly of being out of line with their peer group on buybacks by moving to a 5% discount, something I have lobbied them and their boards on for years.

This should improve the marketability of this year's offerings, the size of which has not yet been announced.

A sub text of the buyback announcement is that old 5 year shares can be cashed on 1 August and the money available for reinvestment after 1 Feb in the same VCT with new tax relief if the offer is still open. Foresight 4 did something similar with their tender offer a year or two back.

[Gostevie]

It's probably just me being OCD but I wish they'd rename 'The Income & Growth VCT' to 'Mobeus Income & Growth 5 VCT' or something to keep the branding consistent.

[james188]

Just to add that at the shareholder event in February, I recall that when the question was put as to whether the Mobeus VCTs should move to a 5% discount rate to fall in line with the likes of Northern and Baronsmead, we were told that all four boards stated that they considered that a 10% discount rate was appropriate. I am very pleased that they have changed their minds, but I wonder why, just under six months after that statement. Presumably they thought that the fundraising would otherwise be less attractive.

On the name change, Gostevie, I would simply observe that VCT5s for other houses, have either merged or underperformed, or often both. I'd keep it as is.

[BusyBumbleBee]

Good to see Mobeus VCT family finally removing the anomaly of being out of line with their peer group on buybacks by moving to a 5% discount, something I have lobbied them and their boards on for years.

This should improve the marketability of this year's offerings, the size of which has not yet been announced.

A sub text of the buyback announcement is that old 5 year shares can be cashed on 1 August and the money available for reinvestment after 1 Feb in the same VCT with new tax relief if the offer is still open. Foresight 4 did something similar with their tender offer a year or two back.

I really don't like VCTs buying back shares at a 5% discount : it's the tax free dividends I'm after and the capital value of the shares is of little importance to me. In fact the lower the price the less inheritance tax my heirs will have to pay.

But most importantly the whole set of rules around VCTs has just changed and we are almost in a situation we were in before, when managers and directors made hideously bad choices of companies to invest in and the NAV of many VCTs went steadily down down down until the VCT had no money to buy back shares and the share price plummeted - leaving severely distressed shares to be picked up for a song if you were brave. The new rules are seriously unforgiving of mistakes and there are no high interest loans to even things up a bit

[sinterklaas]

…
A sub text of the buyback announcement is that old 5 year shares can be cashed on 1 August and the money available for reinvestment after 1 Feb in the same VCT with new tax relief if the offer is still open. Foresight 4 did something similar with their tender offer a year or two back.

Good spot, yes well read.

It's probably just me being OCD but I wish they'd rename 'The Income & Growth VCT' to 'Mobeus Income & Growth 5 VCT' or something to keep the branding consistent.

Ha, yes, same here. And I'm sure you've also noticed how easy it is to get some of their four mixed up with Maven's five. The TIDM situation is even worse

[SpinDoctor]

At least some of the Maven funds are major buyback policy outliers - they are large and mature Companies, so the anomalous arrangements look difficult to justify.
For example MIG5 - "shares will be bought back at prices representing a discount of between 10% and 15%
to the prevailing NAV per share." Currently bid 31.6p on a recently stated NAV of 37.56p giving a discount of 16%.