RIT Capital Partners plans GBP300 million return, mulls higher payouts
RIT Capital Partners PLC on Wednesday set out plans to return of £300 million to shareholders, and review its dividend policy.
The investor, which has a portfolio that includes listed and private firms, said it has reviewed its capital allocation plans.
"The company has a differentiated investment strategy, a high-quality portfolio and a strong balance sheet. At the same time, the board continues to believe the company's shares trade at a material discount to their underlying value. Against this background, the board has considered what further steps it can take to enhance long-term shareholder value while remaining true to the company's investment strategy," RIT Capital Partners said.
"Today, the board announces a package of strategic initiatives designed to enhance long-term shareholder returns, improve liquidity and strengthen its capital allocation framework."
RIT Capital Partners plans a tender offer of up to £300 million, at a 15% discount to its June 30 net asset value. It expects to announce that NAV on July 22. The tender offer is to be "meaningfully accretive to NAV per share", RIT said.
Its NAV per share was 3,030p on May 31, rising from 2,970p at the end of April. At the May 31 NAV, the tender offer price would be 2,757.50p.
In response, the stock rose 4.0% to 2,365.00 pence each in London on Wednesday morning. It has a £3.22 billion market capitalisation.
RIT Capital Partners also plans a "review" of the dividend policy, which could lead to a chunkier payout from 2027.
It said: "The board recognises the importance of dividends as a component of shareholder returns and intends to review the company's dividend framework as part of its broader capital allocation strategy.
The board will provide an update on dividend policy, including consideration of an increased dividend from 2027, alongside the company's annual results."
Its proposed dividend for 2026 is 45 pence per share, up 4.7% from 2025. Its current policy is to "maintain or increase the dividend".
RIT Capital said Wednesday that it "remains committed to operating an active share buyback programme".
"Share repurchases continue to represent an attractive mechanism for enhancing shareholder value when the company's shares trade at a material discount to NAV and will remain an important component of the company's capital allocation framework," RIT added.
It will seek shareholder approval for the tender offer at a July 24 general meeting.
The firm's portfolio includes dermatology firm Galderma Group AG, listed in Zurich, while Verona, Wisconsin-based healthcare software firm Epic Systems is among its private investments.
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