Schroders is discussing with shareholders of the Schroder Split Fund what sort of structure they wan...
Schroders is discussing with shareholders of the Schroder Split Fund what sort of structure they want the rollover vehicle to be when the trust winds up in January.
The board of the split capital trust is in the advanced stages of considering alternatives for the future of the company and is actively market-testing ideas.
The board is anxious to avoid the situation that occurred with JPMorgan Fleming last month, where the early wind-up scheme proposed by the board of the Fleming Income & Capital investment trust failed because the trust's zero holders were unhappy with the terms of the rollover.
Schroders hopes that by talking to shareholders about what sort of structure they want, how much bank debt they want, and what sort of yield they are after, it can avoid such a situation.
The NAV of the Split Fund at close of business on 31 July 2001 was £171.8m. If the company was to have the same value at winding-up, the first £76.5m would be earmarked for repayment of the zeros at 202.76p per share.
The remaining £95.3m, ignoring closing expenses, would be divided between the income and capital shares.
Income shareholders would be allocated £66.2m, approximately 116.9p per share, and capital shareholders would get £29.1m, approximately 102.7p per share.
All shareholders will be informed of the board's assessments over the next two months.
£1bn business since inception
Considered doing so in 2015
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