Alliance Trust PLC - Outcome of Court Hearing o...

Alliance Trust PLC

£645.3m increase in distributable reserves through conversion of merger reserve

The Board of Alliance Trust PLC (the “Company”) announces that the Court has approved the conversion of its £645.3m Merger Reserve into a distributable reserve, having previously received shareholder approval to do so. This has significantly increased the proportion of the Company’s reserves capable of being distributed to shareholders. £3,242m¹ is available for distribution, thereby affording the Board additional flexibility when contemplating its future dividend and distribution policy.

A certified copy of that Court order is expected to be registered by the Registrar of Companies in Scotland no later than 12 July 2021.

Gregor Stewart, Chairman, commented:

“We are pleased to have completed the conversion process on behalf of shareholders. This significantly increases our distributable reserves and provides us with a greater degree of financial flexibility for the future and therefore underpins the Company’s objective of paying a rising dividend.”

About Alliance Trust PLC (ATST)

Alliance Trust PLC is one of the oldest and largest investment trusts in the UK, offering a diversified but highly active global equity portfolio at a competitive cost. The portfolio is managed by Willis Towers Watson which selects best-in-class stock pickers from around the world, all with different styles and approaches to investing, and asks them to invest only in their best ideas. Alliance Trust is an AIC Dividend Hero with 54 consecutive years of rising dividends.

https://www.alliancetrust.co.uk

For more information, please contact:
Mark Atkinson Head of Marketing and Investor Relations		Sarah Gibbons-Cook
Alliance Trust PLC		Quill PR
Tel: [phone]		Tel: [phone] / [e-mail]

¹ Following the conversion of the Company’s Merger Reserve, the Company’s distributable reserves comprise (based on the size of these reserves as at 31 May 2021):

Reserve	Amount (£ m )
Revenue Reserve	95
Capital Reserve: Realised Capital Reserve Unrealised Capital Reserve	2,028 474
Merger Reserve	645
Total Distributable Reserves	3,242

In the event that the Company were to distribute any Reserve funds in the future, it may require realisation of some of the Company’s assets to the value of the funds being distributed less any cash resources available to the Company at the time.

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