Guinness Flight Geared Income & Growth Trust (GFGIGT) has increased in size by £94.7m as a consequen...
Guinness Flight Geared Income & Growth Trust (GFGIGT) has increased in size by £94.7m as a consequence of City of Oxford shareholders rolling over into it. The £154m trust is now one of the largest split capital vehicles in the industry
Some 47.5% of the original trust's zero dividend preference shareholders and 70.2% of ordinary shareholders elected to roll their investments into GFGIGT rather than take a cash exit out of City of Oxford on wind up
In addition HSBC, the brokers to the trusts, have carried out a placing of GFGIGT shares to ensure the Oxford trust's capital structure was replicated. The brokers have placed £3.6m worth of zeros, £30.6m income shares and £5.4m in geared ordinary shares. The trust will also take out an additional £29.3m in bank borrowings
GFGIGT was launched last November and had net assets of £47.2m. It has a fixed life and will wind up at the end of March 2006. Approximately 65% of the underlying portfolio consists of large and medium-sized high yielding UK companies. This part of the portfolio has a yield of 3.6% and is managed by Chris Burvill. It is similar to the underlying portfolio of the Temple Bar Trust, which is also managed by the group
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