Partial Compulsory Redemption

RNS Number : 6108W

River & Mercantile UK Micro Cap Inv

15 November 2017

 

15 November 2017

River and Mercantile UK Micro Cap Investment Company Limited

(the "Company")

The information contained within this announcement constitutes inside information.

Partial compulsory redemption

In June 2017, the Company completed its first partial compulsory redemption, returning approximately £15 million to shareholders and bringing the Company's net asset value ("NAV") to around £100 million, in accordance with the Company's stated policy. At this level of NAV the Company is able to exploit fully the underlying investment opportunity in Micro Cap Companies.

Since the first partial compulsory redemption, the portfolio, which is managed by Philip Rodrigs with the support of the broader equity investment team at River and Mercantile Asset Management, has continued to deliver strong investment returns, growing the NAV to approximately £114 million.  Accordingly the Company is pleased to announce its intention to implement the Company's second compulsory redemption of Shares (the "Redemption").

Approximately £15 million, less the costs of the Redemption, is to be returned to shareholders pursuant to the Redemption at a price based on the Company's NAV per share as at close of business on 10 November 2017.  The Company's NAV per share as at 10 November 2017 was £1.9126 and, accordingly, after deduction for expenses, the amount to be paid to shareholders for each redeemed Share is £1.9124 (the "Redemption Price").  It is expected that payments of Redemption monies will be effected either through CREST (in the case of Shares held in uncertificated form) or by cheque (in the case of Shares held in certificated form) by 15 December 2017.

The Redemption is being effected pro rata to holdings of Shares on the register at the close of business on 1 December 2017 (the "Redemption Date") pursuant to a general authorisation to redeem shares held by all shareholders in accordance with the redemption mechanism in the Company's articles of incorporation.

Prior to the Redemption the Company had 59,795,329 redeemable ordinary shares in issue.  All of the shares redeemed on the Redemption Date will be cancelled.  No fractions of Shares will be redeemed and so the number of Shares to be redeemed for each Shareholder will be rounded down to the nearest whole number of Shares.

The shares will be disabled in CREST after close of business on the Redemption Date and the existing ISIN number - GG00BZ3GBN95 (the "Old ISIN") - will expire.  The new ISIN in respect of the remaining shares which have not been redeemed - GG00BDG13K82 (the "New ISIN") - will be enabled and available for transactions from 8.00 a.m. on 4 December 2017.  Up to and including the Redemption Date, Shares will be traded under the Old ISIN and as such, a purchaser of such Shares would have a market claim for a proportion of the redemption proceeds.  CREST will automatically transfer any open transactions as at the Redemption Date to the New ISIN.

Expected timetable:

Record date for the Redemption                                 1 December 2017
Redemption Date and expiry of Old ISIN                     1 December 2017
New ISIN enabled                                                         4 December 2017
Redemption monies paid by                                      15 December 2017
 

Unless otherwise defined, capitalised words and phrases in this announcement shall have the meaning given to them in the Company's prospectus dated 4 November 2014.

The person responsible for arranging for the release of this announcement on behalf of the Company is Jasper Cross of BNP Paribas Securities Services S.C.A., Guernsey Branch, Company Secretary.

Enquiries:

Jasper Cross

BNP Paribas Securities Services S.C.A., Guernsey Branch

Tel: [phone]

Neil Morgan

Winterflood Securities Limited

Tel: [phone]

 

END

 

 

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