THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF
ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS
PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018, AS AMENDED. ON THE PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
Downing Strategic Micro-Cap Investment
Trust plc (the "Company" or "DSM")
LEI Number: 213800QMYPUW4POFFX69
Update on planned return of capital to
shareholders
Further to the circular to shareholders
published on 8 March 2024 (the "Circular") and following strong
results announced by several investee companies, the Board of DSM
is pleased to announce that the level of cash within the Company's
portfolio against the Company's NAV as at 6 March 2024 (being the
NAV referred to throughout the Circular) has increased to over 40%.
The Board, therefore, anticipates that it will be able to undertake
an issue and redemption of B shares on or around 4 April 2024 so as
to return capital of approximately 26.0 pence per ordinary share to
existing shareholders. This is significantly improved on the
previous anticipated return of approximately £10
million in aggregate (representing approximately 21.5 pence per
ordinary share), as set out in the
Circular.
The issue and redemption of B shares is subject
to the passing of the resolutions to be moved at the General
Meeting of the Company being held on 3 April 2024, which together
seek to approve the implementation of B shares schemes by the
Company.
The remainder of the portfolio comprises
investments in companies where there is a clear path to greater
value than that currently reflected in the Company's NAV.
Some of DSM's investee companies are currently in strategic review
or bid situations that are likely to realise value over coming
months.
As detailed in the Circular, it is the Board
and Investment Manager's expectation that at least 50% of the
Company's NAV (calculated as at 6 March 2024), will be distributed
to shareholders by 30 June 2024. The Investment Manager
intends to update shareholders on further portfolio developments
shortly after the return of capital to be made in April.
Chairman, Hugh Aldous, commented: "As a Board
we are committed to do the right thing for our shareholders and are
pleased to see that, subject to receiving shareholder approval at
our general meeting on April 3, our plans to wind down our
portfolio and return capital to shareholders are well on track. As
of today, we are able to confirm that thanks to recent
developments, we are able to increase the amount of our initial
distribution in April by approximately 20% and are more confident
than ever of being able to have returned more than 50% of the
current capital by end June. Progress to date bodes well for prospects
of completing the return of 100% of capital to shareholders and
capturing further premiums to NAV."
For further information please
contact:
Chairman
Hugh Aldous
tel: 020 7416 7780
Dickson Minto
Advisers LLP
Douglas Armstrong
tel: 020
7649 6823
Media
Contacts
Garfield
Advisory
Andrew Garfield
tel: 07974 982337
Jason Nisse
tel: 07769 688618