THIS ANNOUNCEMENT
AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE,
PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO,
THE UNITED STATES, AUSTRALIA, CANADA, JAPAN
OR THE REPUBLIC OF SOUTH
AFRICA.
The information
communicated in this announcement is deemed to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014. Upon the publication of this announcement, this
information is considered to be in the public domain.
CAMERON INVESTORS
TRUST PLC
PUBLICATION OF
CIRCULAR
The Cameron Investors Trust plc (the "Company") has today
issued a circular (the "Circular") to its shareholders (the
"Shareholders") in connection with the recommended proposals
for the winding up and reconstruction of the Company (the
"Proposals").
Introduction
As stated in the prospectus published by the Company 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 the Company's assets with Troy Income &
Growth Trust plc ("TIGT") under the Proposals.
The Proposals
Under the Proposals, all Shareholders will roll over their
entire investment in the Company into shares in TIGT. TIGT is an
investment trust which was launched in July
1988. Its investment objective is to provide shareholders
with an attractive income yield and the prospect of income and
capital growth by investing in a portfolio of predominantly UK
equities. Its capital structure is the simplest possible for an
investment trust, consisting only of ordinary shares.
In selecting TIGT as the most suitable rollover vehicle for the
Shareholders, the Board paid particular regard to the
following:
- TIGT's investment objective and policy are substantially the
same as those of the Company and TIGT is managed by the same
investment manager;
- Shareholders are expected to receive a similar dividend yield
on the new TIGT shares;
- TIGT has a lower ongoing costs ratio than can be achieved by
the Company in its current form;
- TIGT has a market capitalisation of over £247 million which
will provide considerably improved liquidity for Shareholders;
and
- TIGT operates a discount control mechanism which should reduce
the risk that shares will trade at a material discount to their net
asset value.
Final interim dividend
The Board intends that the Company will pay a final interim
dividend of not less than 8 pence per
share in respect of the period from 11 June 2019 to
24 October 2019 to Shareholders on
the Company's register at close of business on 1 November
2019.
Costs of the Proposals
The costs of the Proposals which are to be borne by the Company
(including irrecoverable VAT and stamp duty and/or stamp duty
reserve tax which is payable on the transfer of the assets
constituting the Rollover Pool from the Company to TIGT) are
expected to be approximately £400,000. No costs will be incurred by
the Company in terminating its investment management agreement with
Troy Asset Management Limited.
Conditions of the Proposals
Implementation of the Proposals is subject to a number of
conditions, including:
- the passing of the Resolutions at the General Meetings;
and
- the FCA agreeing to admit the New Shares to the Official List
and the London Stock Exchange agreeing to admit the New Shares to
trading on its Main Market, subject only to allotment.
General Meetings
The implementation of the Proposals will require Shareholders to
vote in favour of Resolutions to be proposed at the General
Meetings of the Company which have been convened for 2.30 p.m. on 8 November
2019 and 11.30 a.m. on
18 November 2019. The notices
convening the General Meetings, which set out in full the terms of
the Resolutions which are to be proposed, are set out in the
Circular. The General Meetings will be held at the offices of
Dickson Minto W.S., Broadgate Tower,
20 Primrose Street, London EC2A
2EW.
General
Expressions used but not defined in this announcement have the
meanings ascribed to them in the Circular. The Circular is
available at www.cameroninvestors.co.uk and a copy has been
submitted to the National Storage Mechanism and will shortly be
available for inspection at www.morningstar.co.uk/uk/NSM.
Enquiries
PATAC Limited
Company Secretary
0131 538 1400