Gabelli Merger Plus+ Trust Plc
29
October 2024
Gabelli Merger Plus+ Trust
Plc
(the
"Company")
Announces the Expansion of
its Operating Investment Activities
Gabelli Merger Plus+ Trust Plc ("The
Company") today announces the acquisition of its affiliated UK
investment manager, Gabelli Securities International UK Limited
("GSIL UK"), a limited company organized and existing under the
laws of England and Wales for approximately $1 million. The
transaction received regulatory and board approvals and is subject
to financing.
Financing will be accomplished with
the issuance of 96,493 ordinary shares at a price of $10.41 per
share in exchange for GSIL UK shares. Further, the fulfilment of
the consideration related thereto will increase the Company's cash
and investments for the benefit of the Company's shareholders by
approximately 14.5 cents per share as it consolidates GSIL UK's $1
million balance sheet in the exchange.
Summary data ($ in thousands, except
for per share data)
All figures as of 25 October 2024
|
|
|
Net
Assets
|
|
NAV/
Share(1)
|
|
Transaction Price/share
|
|
Premium
to
NAV
|
|
Gabelli Merger Plus+ Trust
Plc
|
|
$67,695
|
|
$9.91
|
|
$10.41
|
|
$0.50
|
|
GSIL UK
|
|
$1,004
|
|
|
|
|
|
|
(1) The
Company's net asset value presented excludes the impact of deferred
taxes, if any.
The acquisition positions the
Company to increase sources of income, allowing for both
self-management and the broadening of services to affiliated and
third parties.
The acquisition is expected to be
completed before the year-end 2024.
"Including GSIL UK in the operating
profile of the Company is an important strategic step to further
enhance value for shareholders," said John Birch, Co-Chairman. "It
is also in line with the Company's Investment Policy to pursue a
variety of strategies and instruments, including, but not limited
to controlling operating businesses to grow value," added Mr.
Birch.
An application has been made to the
London Stock Exchange for 96,493 new ordinary shares (the
"Consideration Shares") to be admitted to trading on the Specialist
Fund Segment of the London Stock Exchange (the "Admission"). The
Consideration Shares will rank pari passu with the Company's
existing ordinary shares. It is expected that Admission of the
Consideration Shares will become effective and that dealings will
commence on or around 8:00am GMT on 1 November 2024.
Following the issue of the
Consideration Shares, the Company will have 6,927,785 ordinary
shares in issue, with each ordinary share carrying the right to one
vote, and 3,502,874 ordinary shares held in treasury. These
figures may be used by shareholders in the Company as the
denominator for the calculations by which they will determine their
interest in, or a change to their interest in, the share capital of
the Company under the FCA's Disclosure Guidance and Transparency
Rules.
The acquisition of GSIL UK by the
Company may be deemed to be a transaction with a related party by
virtue of GSIL UK being an indirect wholly-owned subsidiary of
Associated Capital Group, Inc. ("ACG"). ACG is presently a 92.6%
shareholder of the Company; following the acquisition and the
issuance of the Consideration Shares, ACG will be a 92.7%
shareholder of the Company. The Directors of the Company consider
that the terms of the acquisition are fair and reasonable as to all
of the Company's shareholders.
About Gabelli Securities International UK
Limited
Gabelli Securities International UK
Limited is an investment management firm started in 2011 to grow
the European businesses of Gabelli Asset Management's international
efforts. Today, the company is primarily focused on the markets of
the UK and Europe, operating as an investment advisory and asset
management firm. Regulated by the Financial Conduct Authority
(FCA), the company provides investment services including fund
management and advisory services under Markets in Financial
Instruments Directive (MiFID), offering tailored financial
solutions for its clients.
About Gabelli Merger Plus+ Trust Plc
Gabelli Merger Plus+ Trust
Plc an investment company incorporated in
2017 and listed on the London Stock Exchange under the ticker
symbol 'GMP.' The Company's primary investment objective is
to seek to generate total returns, consisting of capital
appreciation and current income. The Company seeks a secondary
objective of the protection of capital, uncorrelated to equity and
fixed income markets. Since its inception, GMP has delivered
consistent total returns to shareholders by utilizing the Gabelli
Private Market Value (PMV) with a CatalystTM investment
methodology, maintaining a diversified portfolio of strategies
implemented to create an optimal risk/reward profile for the
portfolio. To access additional product information please
visit:
https://www.gabelli.co.uk/investment-products/gabelli-merger-plus/
For
further information, please contact:
Enquiries:
Gabelli Asset Management UK Ltd.
Email: Info@Gabelli.co.uk
Please also find us at:
https://www.londonstockexchange.com/stock/GMP/gabelli-merger-plus-trust-plc/analysis
LEI: 5493006X09N8HK0V1U37