BIL Shares "Don't Reflect True Value" Of The Firm

Guernsey-based Biotechnology Investments Limited, Europe's leadingspecialist investment company in the field (Marketletter February 24), has announced a net asset value for the year ended May 31, 1997, of $395.2 million, up 9% with value per share rising from $6.53 to $7.12.

Despite average annual growth in NAV of nearly 30%, the stock market value of the shares has been persistently weaker. A statement from the directors of the company said that they were "concerned that the share price does not fully reflect the true value of the company."

In response, BIL proposes to take advantage of the discount at which its shares are trading by buying back up to 15% of the company's shares at prices less than their NAV. Lord Armstrong of Ilminster, chairman, said: "the company is taking action to enhance shareholder value ... our buy back proposals should assist liquidity." Shareholders' consent will be sought at the annual general meeting in September.