The
Diverse Income Trust Plc (The
"Company")
VOLUNTARY REDEMPTION OF ORDINARY
SHARES
YOU
DO NOT HAVE TO TAKE ANY ACTION IF YOU WISH TO RETAIN YOUR
SHARES.
Under
the Company’s Articles of Association, the Company operates an
annual voluntary redemption facility through which shareholders may
request the redemption of all or part of their holding of
redeemable Ordinary Shares of 0.1p each in the Company (“Ordinary
Shares”) for cash on 31 May in each year (or on the last working
day before this
date).
There
is no requirement for shareholders to take any action should they
wish to retain their Ordinary Shares. As at close of business on
8 April 2024, the Ordinary Share
price was 86.40p and the Net Asset Value (including current period
revenue) was 92.04p per Ordinary Share, so the Ordinary Shares were
trading at a 6.13%
discount.
A
redemption of Ordinary Shares may be subject to income tax and/or
capital gains tax. In particular, private shareholders that sell
their shares via the redemption mechanism could find they are
subject to income tax on the gains made on the redeemed shares
rather than the more usual capital gains tax on the sale of their
shares in the market. Shareholders are advised to seek professional
advice on their individual circumstances from their stockbroker,
accountant, tax adviser or other independent financial adviser,
including in relation to the tax treatment of their redemption
proceeds.
The
investment objective of the Company is to provide shareholders with
an attractive and growing level of dividends coupled with capital
growth over the long term. None of the Directors of the Company
will be redeeming any of their shares under the redemption
facility.
Shareholders submitting valid requests for the
redemption of Ordinary Shares will have their shares redeemed at
the Redemption Price which is calculated on either of the following
bases, at the absolute discretion of the
Directors:
-
The Directors can elect to
divide each of the Company’s portfolio holdings in proportion to
the percentage of shareholders opting for redemption and to place
those shares in a Redemption Pool to be sold via the stock market.
When complete, the realisation proceeds after deduction of costs
would be distributed to redeeming shareholders pro rata. It should
be noted that the liquidation of a Redemption Pool can be expected
to take some weeks or months, and the final capital sum may not
amount to the initial valuation of the Redemption Pool;
or
ii. If the
percentage of Diverse Income Trust shares that opt for redemption
is a modest proportion of the Company the Directors can set a
Redemption Price (the “Dealing Value”) equal to the Net Asset Value
per Ordinary Share (including current period income) prevailing on
the last business day prior to the Redemption
Point.
The
Directors may alternatively arrange for shares requested for
Redemption to be sold in the market at the Dealing Value, provided
that the Dealing Value obtainable is no less favourable to
redeeming
shareholders.
The
Directors are minded to approve all redemption requests unless
there are exceptional reasons why this would be contrary to the
interests of shareholders as a
whole.
The
Directors of the Company have, within the terms of the Company’s
Articles of Association, full discretion over the operation of the
redemption facility and the calculation of the Redemption
Price.
Certificated Shareholders wishing to request the
redemption of all or any of their Ordinary Shares at the proposed
Redemption Point should deliver to the Company’s Registrar a duly
completed Redemption Request form, together with their share
certificate or in respect of shares held in uncertificated form,
CREST Shareholders should complete a transfer to escrow (TTE)
instruction in accordance with the timetable set out below.
Redemption Request forms are available on the Company’s
website; https://www.diverseincometrust.com or
from the Company’s Registrar, Link Group on +44 (0) 371 664 0300 or
by email at shareholder.services@linkgroup.co.uk.
Calls are charged at the standard geographic rate and will vary by
provider. Calls outside the United
Kingdom will be charged at the applicable international
rate. The helpline is open between 9.00
am – 5.30 pm, Monday to
Friday, excluding public holidays in England and Wales. Please note that Link Group cannot
provide any financial, legal or tax advice and calls may be
recorded and monitored for security and training
purposes.
The
relevant dates for the May 2024
Redemption Point are outlined
below:
1 May
2024 |
Latest date for receipt of Redemption Requests and
certificates for certificated
shareholders |
3.00
pm
on 1 May
2024
|
Latest date and time for receipt of Redemption
Requests and TTE instructions for uncertificated shares via
CREST |
5.00
pm on 31 May 2024 |
The
Redemption Point |
On or
before 14 June 2024 |
Company to notify Redemption Price and dispatch
redemption monies; or if the redemption is to be funded by way of a
Redemption Pool, Company to notify the number of shares being
redeemed. Notification of Redemption Price and dispatch of
redemption monies to take place as soon as practicable thereafter
|
On or
before 28 June 2024 |
Balance certificates to be sent to shareholders
(where applicable) |
Further details of the redemption facility are set
out in the Company’s Articles of Association or are available from
the Company
Secretary.
Defined terms in this announcement have the same
meaning as set out in the Articles of Association, a copy of which
may be obtained from the Company
Secretary.
9 April
2024
LEI:
2138005QFXYHJM551U45