Digital 9 leaps as board refers to ‘maximising shareholder value’

Shares in Digital 9 Infrastructure rise after its board promises a ‘set of actions’ that could entail a managed wind-down following last month’s badly-received dividend cut.

Shares in Digital 9 Infrastructure (DGI9 ) have jumped 12% after its board said it was developing ‘a set of actions focused on maximising shareholder value’.

The stock has slumped by a third since scrapping its second-quarter dividend last month, but it recovered 4p to 38.2p this morning as the investment company said it had completed a consultation with investors holding three-quarters of its shares.

DGI9 said it had received feedback on the dividend policy and the future direction of the company with investment bank Goldmans Sachs retained as its lead adviser in the assessment.

This raises the prospect that the Triple Point-managed fund, which labours under debt of £545m, could be considering a managed wind-down to return investors’ money. Before today’s spike, the shares had plunged to a 65% discount to net asset value, reflecting shareholders’ unhappiness at the cut in the payout and the delay in selling a stake in its prime asset, Icelandic data centre operator Verne Global, also announced last month.

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