Lifestar Holdings has announced plans to potentially buy shares of its subsidiary, LifeStar Insurance plc (LSI), since it believes that LSI’s shares are currently trading at prices much lower than their true value.
According to an independent valuation, the fair value of each LSI share is just over €1.00, but the shares have been trading around €0.40 on average recently, and even dipped to €0.20 at one point.
Lifestar Holdings said this low market price doesn’t reflect the actual performance and potential of LifeStar Insurance.
Because of this, Lifestar Holdings may buy shares when they find opportunities to purchase them below the fair value. However, the company isn’t committing to buying any shares at a specific time or price, and said it will continue to update the market as appropriate, following regulatory guidelines.
In its interim financial statements for the six months ending 30 June, Lifestar reported a pre-tax loss of €0.7 million, an improvement from the €2.14 million loss in the same period last year. Total assets stayed around €155 million, and liabilities remained steady at €132 million. Total equity dropped by 3 per cent (€0.74 million) to €23.6 million, meaning the net asset value per share is now €0.364.
LifeStar Insurance Group is a Malta-based group of companies that provides a comprehensive range of life insurance products, including protection, savings, investment, and retirement solutions. The group comprises LifeStar Insurance plc, LifeStar Health Limited, and GlobalCapital Financial Management Limited.
