|
Aberforth Split Level Income Trust PLC on Monday unveiled the terms of a proposed wind-up, which include the creation of a new trust focused on the ‘significant recovery potential’ of smaller UK equities. The London-based trust, which holds two forms of shares traded on the London Stock Exchange, has reached an agreement with Aberforth Geared Value & Income Trust PLC on terms of a voluntary wind-up of the company. AGVIT will acquire the assets of ASLIT in exchange for shares in the new investment trust, which is expected to launch July 1. The new trust will ‘be designed to take advantage of the significant recovery potential of UK equities in general and smaller companies in particular’, ASLIT said, and will have the same investment manager in Aberforth Partners. AGVIT’s capital structure, like ASLIT, will comprise ordinary shares and zero dividend preference shares. Both classes will be issued at 100 pence per share on launch, with a gearing range of 30% to 40%. ASLIT said: ‘[The proposals] enable shareholders to maintain their exposure to a diversified portfolio of small UK quoted companies through a closed-ended investment vehicle with a fixed life without incurring significant realisation costs or portfolio reorganisation costs.’ The company added that shareholders will continue to benefit from the investment management expertise of Aberforth Partners, while also saving on potential realisation costs upon the company’s wind-up. Final proposals for the scheme are scheduled for publication by the end of May, the company added, with general meetings expected to be held in June. Should ASLIT shareholders approve of the proposals, the wind-up is expected to become effective on June 28. ASLIT also announced that, given its revenue position, the company has increased its interim dividend to 3.25 pence per share from a previous estimate of 2.75p. Shares in Aberforth Split Level Income Trust were up 3.9% at 80.00 pence each in London on Monday afternoon. Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
