The continuation vote held at FSFL’s Annual General Meeting on Wednesday saw 24.4 percent of its shareholders opt for the dissolution of the company, prompting Iain Scouller, an analyst at the investment banking and brokerage firm Stifel, to hypothesize that several of the largest shareholders may have voted to bring an end to the fund’s existence.
The £510 million renewable infrastructure fund’s shares are presently valued at 88p, displaying a discount of 22% to the net asset value (NAV), prompting efforts to address this significant disparity through methods like debt reduction and capital return to investors via a buyback program.
Despite the widespread dissatisfaction, the FSFL board found solace in the fact that a significant majority of shareholders endorsed the board’s recommendations to continue the company, with 76% voting against discontinuing the fund, while investors are actively involved in tackling the obstacles affecting the alternatives market.
Foresight Solar’s Chair, Alexander Ohlsson, stated that the board is aware of the concerns and they are committed to maintaining communication with everyone, including those in support of the discontinuation.
Scouller suggested that shareholders would probably push for continued efforts from the board and managers in terms of identifying strategies to mitigate the discount and enhance shareholder value. He adds that doing so is beneficial as it helps the company retain a “positive recommendation.”