Proposed Share Issues

RNS Number : 1372F

Troy Income & Growth Trust Plc

12 June 2012

 



To:                    RNS

From:                Troy Income & Growth Trust plc

Date:                 12 June 2012

Proposed share issues

The Board of Troy Income & Growth Trust Plc ("TIGT") is pleased to announce that TIGT has been invited by the board of Albany Investment Trust Plc ("Albany") to be the sole successor vehicle in a scheme of reconstruction of Albany and, separately, by the board of Grampian Investment Trust plc ("Grampian") to be the sole successor vehicle in a scheme of reconstruction of Grampian. Albany has approximately £29m of net assets, Grampian has approximately £10m of net assets while TIGT has approximately £81m of net assets.

The proposals in relation to Albany are expected to be effected by way of a section 110 scheme of reconstruction of Albany.  Under the terms of the scheme, pursuant to which TIGT will make its shares available at a 1% premium to its NAV (calculated on a pre cost and cum income basis), each of Albany and TIGT will bear its own transaction costs (net in each case of a contribution arrangement with TIGT's manager).

The proposals in relation to Grampian are expected to be effected by way of a section 110 scheme of reconstruction of Grampian.  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.

Both transactions have been structured to ensure that neither proposal results in any NAV dilution for TIGT's existing shareholders.

The benefits of the above proposals for TIGT shareholders include an increase in TIGT's size enabling it to attract a wider range of investors which, in turn should improve the liquidity of its shares and also result in a reduction in TIGT's fixed operating costs as a percentage of shareholders' funds.

Rolling Albany and Grampian shareholders will, amongst other things, benefit from TIGT's discount and premium control policy which seeks to ensure that its shares always trade at close to net asset value through a combination of share buy-backs (where the middle market price for a TIGT share is below the published net asset value per Share) coupled with the issue of new TIGT shares at a premium to net asset value where demand exceeds supply.

It is expected that further details of these proposals, including the publication of a TIGT prospectus in respect of each scheme of reconstruction, will be published as soon as practicable. 

Enquiries:

Francis Brooke, Troy Asset Management Ltd - 020 7499 4030

Nathan Brown / Hugh Jonathan, Numis Securities Limited - 020 7260 1426/1263

 

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