Morning all,

The main news on my plate has been the announcement by Volvere (LON:VLE) of a large tender offer.

Other things which have happened today:

  • BigDish (LON:DISH) has made another rollout RNS.
  • Hipgnosis Songs Fund (LON:SONG) has acquired another impressive music catalogue
  • Burford Capital (LON:BUR) announces the successful conclusion of a large case
  • Brady (LON:BRY) updates in line with expectations at its AGM
  • Watches of Switzerland (LON:WOSG) (new ticker) - Watches of Switzerland achieves a market cap of almost £650 million at IPO.

Volvere (LON:VLE)

  • Share price: 1253.5p (+2%)
  • No. of shares: 3.1 million
  • Market cap: £39 million

Tender Offer

(Please note that I have a long position in VLE.)

This is by far my largest single holding, and it feels like this has been true for a while. It has been in my portfolio for three years.

Yesterday's announcement was released just after 3pm - perhaps a little unusual, but there you go.

Volvere has been discussed in this report twice very recently: on May 22 by Paul and on May 24 by myself.

On May 22, I said:

I would support another share buyback at the current share price... My reasoning is that the cash balance is just a bit too large for it to be used within any foreseeable timeframe, so it makes sense to return a bit more of it to shareholders.

I don't know if management read this report, but they evidently agree with my thought process. The latest buyback announcement is for up to 41% of shares outstanding, with a return of £16.6 million.

Reason for the Offer

Please check the archives for a complete description of the background story. As the tender offer announcement states:

The Group currently has approximately £36.2 million of cash but believes that the appropriate level of cash available for investment on an ongoing basis should be around £20 million and accordingly, the Group has funds surplus to its current operational requirements.

That is perfectly clear and simple.

And I'm glad that the company has settled on a figure on £20…

Unlock this Article with a 14 day free trial

or Unlock with your email

Already have an account?
Login here