(Alliance News) - UK Mortgages Ltd on Wednesday said an offer from M&G Investment Management Ltd undervalues the company.
The investment also announced plans for a share buyback and aims to restore its dividend to the 4.5 pence level annually.
M&G Investment Management Ltd said Monday it has made several approaches to buy UK Mortgages all of which have been rejected.
"The board considered the proposal together with its financial adviser, Numis Securities Ltd, and unanimously rejected it on 19 July 2020, having concluded that the terms materially undervalue the company and its prospects. The board of UKML has received no further proposal since the unanimous rejection and is not in discussions with MAGIM at this time," UK Mortgages said.
UK Mortgages added that it plans to buyback 15% of its issued shares from the end of August.
Also, in "light of the portfolio performance observed as the UK lockdown begins to ease", it plans to restore its dividend 4.5p per share annually.
It will pay an additional interim dividend of 1.5p per share for the year ended June 30. For financial 2021, it will pay four quarterly payouts of 1.125p each.
UK Mortgage shares closed 1.1% higher at 64.98p each in London on Wednesday.
By Eric Cunha; ericcunha@alliancenews.com
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