Everest Babcock and Brown Alternative Investment Trust (EBI) has proposed to de-list from the Australian Securities Exchange (ASX) to combat its trading discount to net tangible assets (NTA).
Despite shares rallying after a proposal earlier in the year to adopt an ongoing off-market buyback facility to address its trading discount, EBI’s discount has widened to 33 per cent.
Chairman of EBI Trevor Gerber said: “The board has been looking at potential solutions for some time and in developing our proposal we have been mindful to balance the needs of unit-holders, who would like reasonable levels of liquidity in the short-term, with those of investors who have invested for the longer term.
“The board believes that the proposed delisting provides investors with a solution to EBI’s trading discount to NTA,” he added.
A general meeting of unit-holders will be held in October to vote on the delisting.
