AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Shares in Digital 9 Infrastructure (LSE:DGI9) experienced a decline on Friday following a warning about a significant decrease in the valuation of its portfolio.
The London-listed trust reported that an ongoing review indicated the aggregate valuation as of 30 June was expected to be "materially" lower than the previous valuation recorded on 31 December 2023. Consequently, the net asset value (NAV) is anticipated to be approximately 45p per share, a substantial drop from the 79.3p per share reported in December.
The primary reason for the reduction in NAV was attributed to a "re-assessment of the assumptions relating to the availability of finance for underlying portfolio companies," which impacted the growth projections for these firms. The valuation process is still underway, leaving room for potential further adjustments.
By 1015 BST, shares in Digital 9 had fallen by 13% to 17.97p. Digital 9, which specializes in technology infrastructure such as data centers and fiber optic cables, is in the process of being wound down. This decision was proposed in January after a strategic review and discussions with stakeholders. The board concluded that a managed wind-down was in the best interest of shareholders following a significant drop in the share price and an increase in the discount to NAV, which had reached 76%.
In March, nearly all shareholders approved the wind-down plan. The current phase involves selling off assets "in an orderly manner" and returning capital to shareholders.
On Friday, Digital 9 announced that it had received non-binding offers for several assets, with preferred bidders now advancing to the second phase of the sales process. This marks a step forward in the asset disposal strategy as the trust continues to manage its transition and liquidation process
