Framlington has despatched definitive share certificates for the new ordinary shares of 25p each fol...
Framlington has despatched definitive share certificates for the new ordinary shares of 25p each following the restructuring of the Framlington NetNet.Inc split-cap trust into a conventional vehicle.
The restructuring, combining the trust's capital shares with its income producing shares, came at an extraordinary general meeting on 11 June, following the devastating effect the collapse of internet-related stocks 14 months ago had on the company's NAV and indebtedness.
Robert Jones, chairman of the trust, announced that the new objective of the portfolio is to provide capital growth for shareholders by investing in stocks in the global internet sector.
Even before the restructuring was ratified by shareholders, the income producing element of the portfolio had been sold off.
In April, Investment Week reported that the Framlington NetNet Income split-cap trust had paid back £40m in borrowings, leaving it with net assets of some £7.8m. At that time, the income shares were priced at 5.5p with an NAV per share of 6p, whereas, in the past year, it had been as high as 39.5p. The growth shares were worth 0.5p but had been as high as 14p in April 2001.
The trust had assets totalling £100m at launch in March 2000 with £60m coming from share raising and £40m from lendings by the Bank of Scotland. At the time, half the portfolio was invested in income shares and 50% in technology.
In an announcement to the London Stock Exchange following the EGM on 11 June, the entitlements of the shareholders under the terms of the capitalisation issue, conversion and consolidation were based on an unaudited net asset value of £9,021,872, as at 8 June 2001.
The company's value, its net assets attributable to the new ordinary income shares, is £7.7m. The number of new ordinary income shares issued in respect of each existing ordinary income share is 11.8798. Therefore, a holder of 10,000 existing ordinary income shares will receive 118,798 new ordinary income shares, producing an aggregate holding of 128,798 ordinary income shares.
Following the conversion, such an investor will hold 128,798 ordinary shares of 1p each. Under the consolidation, the investor will receive 128,798 divided by 25, equalling 5,151 ordinary shares of 25p each.
A holder of 10,000 growth shares will, under the conversion, receive 10,000 ordinary shares of 1p each which, following the consolidation, will result in the investor holding 10,000 divided by 25, 400 ordinary shares of 25p each.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November