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(Alliance News) - Apax Global Alpha Ltd on Tuesday announced a EUR30 million share buyback, as it concludes the review of its capital allocation policy.
"The new capital allocation framework constructed in line with AGA's investment objectives to maximise returns for shareholders across economic cycles, and taking into account AGA's overall financial position which continues to be prudently managed," Apax explained.
The London-based investment trust also confirmed that Chair Tim Breedon will step down after nine years in the role on Monday.
Shares in Apax were up 3.0% to 158.18 pence each in London on Wednesday morning.
Apax said it has carried out a review of its capital allocation policy.
On the back of it, it has announced a EUR30 million share buyback programme to begin immediately.
Incoming Chair Karl Sternberg said: "The board believes that AGA's current discount to NAV presents an attractive opportunity for AGA to create immediate value for shareholders by investing in the company's own shares."
It added that it will continue to pay shareholders semi-annually, with the dividend being set at an absolute level of 11p per share per year.
Apax said that this will provide shareholders with "certainty of income."
"To ensure shareholders continue to benefit from the company's growth the board may also consider distributing capital through a special dividend as part of its capital allocation framework," it added.
Separately, Apax said Breedon will step down as chair on Monday next week.
He has spent nine years as chair, since its initial public offering back in 2015.
Apax said he has been "instrumental in overseeing the company's growth during that period."
Karl Sternberg, who has been on the company's board since March, will succeed Breedon as chair.
Sternberg is currently chair of Clipstone Industrial REIT PLC and Monks Investment Trust PLC.
The transition from Breedon to Sternberg was first announced in October last year.
By Sophie Rose, Alliance News senior reporter
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