A former rollover proposal put to shareholders in the Fleming Income & Capital investment trust faile...
A spokesman on JP Morgan Fleming investment trusts says a meeting with analysts this morning indicated that they felt the new deal on the table was acceptable.
The previous proposals failed because holders of zeros were not satisfied with the fact they were being asked to forgo certain returns.
Instead, they are now being offered the option of taking 85.2p cash per share or rolling over into the new JP Morgan Fleming Income & Capital investment trust.
The new trust comes with a redemption yield of 7.5% compared to more than 11% in the precursor.
Ordinary income shareholders are being offered the choice of a cash payment of about 98p per share, or rolling over into the new vehicle in the form of new ordinary shares or units, each representing two ordinary shares and one zero.
"They are getting a good deal," the spokesman says, although JPMF will not be in a position to formerly announce how many investors elected to roll over into the new vehicle until 12 or 13 February.
The new trust will be broken down into 20% debt, 36% zeros, and 44% ordinary shares and promises not to invest in securities of other investment trusts.
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