Signature Capital Investments Limited
(ASX:SGI) has announced plans for an off-market share buyback.
The investment fund says it will 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.
SGI's shares continue to trade at a steep discount to their asset backing, which is the main reason given for the planned buyback.
Signature Capital directors say they have been concerned for some time about the discount the shares have been trading at, relative to the net asset backing per share.
The company says the proposed delisting would give Signature the opportunity to manage and hold its investments in a lower cost environment.
Signature Capital reported a net profit of $113,510 for the first half of fiscal 2013.
