Listed fund Signature Capital Investments has outlined plans for a share buy-back which will deliver control of the company to interests associated with Andrew Roberts, whose family founded the construction group Multiplex.
Signature said it would buy back up to 25 million shares, equal to 37 per cent of the capital, offering 98 per cent of the net asset backing to any shareholders who accept the offer. Through RF Capital, the Roberts family already controls 42.8 per cent of the capital of Signature, which holds investments in a range of funds valued at $25.4 million, which is equal to 37.7¢ a share.
It also has significant potential tax losses totalling $40.9 million, or 61.1¢ a share, which it may be able to access in the future.
SCI's shares continue to trade at a steep discount to their asset backing, which has triggered the planned buy-back. The shares closed trading yesterday at 30.5¢, well below asset backing estimated at 38¢ a share. RF Capital may emerge with as much as 68.3 per cent of Signature if the buy-back of 25 million shares is completed. RF Capital does not plan to participate in the buy-back.