Aberdeen's £32m Smaller Companies Investment Trust is considering proposals for an early wind-up fol...
Aberdeen's £32m Smaller Companies Investment Trust is considering proposals for an early wind-up following an approach from a major shareholder.
The board said the proposals will probably involve a scheme of reconstruction allowing for a cash exit at a discount to net asset value and a rollover into an ongoing alternative investment.
The move follows an approach to the board from a major shareholder and comes ahead of a continuation resolution, which the board is due to present to shareholders before the end of the year. The board said it is in shareholders' interests for the company to realise part of its portfolio to fund further buybacks of equity-linked unsecured loan stock, which are due for repayment on 31 October.
At 12 May the company held cash balances of around £9.5m against the loan stock liability of approximately £7.5m.
HSBC trust analyst Paul Locke said a recent upturn in demand for smaller company stocks, together with the relative concentration of the portfolio, should facilitate an easier sale process than for other trusts in the smaller companies sector.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till