Proposed Reconstruction of the Company (1360F)
12 Juni 2012 - 8:00AM
UK Regulatory
TIDMGRMP
RNS Number : 1360F
Grampian Investment Trust Plc
12 June 2012
To: RNS
Date: 12 June 2012
Grampian Investment Trust plc ("Grampian" or the "Company")
Proposed reconstruction of the Company
As stated in the prospectus published by Grampian on its
admission to the Official List, the Board has been considering
options to increase the size of the Company, possibly through a
merger with another investment trust.
Following careful consideration of the options available to the
Company the Board is pleased to announce that it has agreed in
principle to merge Grampian's assets with Troy Income & Growth
Trust plc ("TIGT"). The merger will be subject to the approval of
the Grampian shareholders.
TIGT is a UK growth and income investment trust with the same
investment objective as Grampian and managed by the same investment
manager, Troy Asset Management. Its principal objective is to
provide shareholders with an attractive income yield and the
prospect of income and capital growth through investing in a
portfolio of predominantly UK equities.
TIGT's policy is to ensure that its shares always trade at close
to net asset value through a combination of share buy-backs coupled
with the issue of new shares at a small premium to net asset value
where demand exceeds supply.
TIGT's investment performance track record since Troy Asset
Management became investment manager is set out below.
Since Troy
appointment 2 years 1 year 6 months
------------------- ------------- -------- -------- ---------
Share price total
return +70.5% +27.4% +10.6% +8.5%
------------------- ------------- -------- -------- ---------
NAV total return +53.6% +21.9% +5.4% +4.8%
------------------- ------------- -------- -------- ---------
FTSE All Share
total return +39.1% +11.4% (2.0%) +6.3%
The benefits of the proposals for Grampian shareholders are as
follows:
-- TIGT's investment objective and policy are substantially the
same as Grampian's and TIGT is managed by the same investment
manager with a strong track record.
-- Grampian shareholders are expected to receive a similar
dividend yield on the new TIGT shares.
-- TIGT has a lower total expense ratio than can be achieved by
Grampian in its current form.
-- TIGT operates a discount control mechanism which should
significantly reduce the risk that shares will trade at a material
discount to their net asset value.
-- TIGT has a current market capitalisation of over GBP81
million which will provide considerably improved liquidity for
Grampian shareholders.
TIGT has also announced today proposals to issue new shares to
another UK investment trust which should further increase the size
of TIGT, reduce its total expense ratio and increase liquidity.
The proposals are expected to be effected by means of a section
110 scheme of reconstruction. Under the terms of the scheme, TIGT
is expected to issue its shares on a NAV for NAV basis and Grampian
will make a contribution to TIGT to ensure that the proposals do
not result in any dilution for TIGT's existing shareholders.
Further details on the proposals are expected to be issued
shortly and it is expected that the scheme will become effective in
late July/early August.
Enquiries:
Douglas Armstrong, Dickson Minto W.S. Tel: 020 7649 6823
Steven Cowie, Personal Assets Trust Administration Company Ltd,
Company Secretary Tel: 0131 538 6604
This information is provided by RNS
The company news service from the London Stock Exchange
END
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