Partial Compulsory Redemption

RNS Number : 3625U

River & Mercantile UK Micro Cap Inv

11 July 2018

 

11 July 2018

River and Mercantile UK Micro Cap Investment Company Limited

The information contained within this announcement constitutes inside information.

Partial compulsory redemption

The Board of River and Mercantile UK Micro Cap Investment Company Limited (the "Company") is pleased to announce its intention to undertake a compulsory redemption (the "Redemption") of its redeemable ordinary shares of no par value (the "Shares") pursuant to the Company's redemption mechanism (the "Redemption Mechanism"). The Redemption Mechanism is used periodically to return capital to Shareholders so as to return 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.

Following a period of strong performance under the stewardship of the Company's new lead manager George Ensor, the Company's NAV has grown to approximately £112 million.  Accordingly, approximately £12 million 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 6 July 2018.  The Company's NAV per Share as at 6 July 2018 was £2.1660 and, accordingly, after deduction for expenses, the amount to be paid to Shareholders for each redeemed Share is £2.1659 (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 10 August 2018.

The Redemption is being effected pro rata to holdings of Shares on the register at the close of business on 27 July 2018 (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. Approximately 10.6% of Shares in issue will be redeemed and cancelled.

Prior to the Redemption the Company has 51,951,860 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 - GG00BDG13K82 (the "Old ISIN") - will expire.  The new ISIN in respect of the remaining Shares which have not been redeemed - GG00BZ8VFG05 (the "New ISIN") - will be enabled and available for transactions from 8.00 a.m. on 30 July 2018.  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                                            27 July 2018

Redemption Date and expiry of Old ISIN                                27 July 2018

New ISIN enabled                                                                    30 July 2018

Redemption monies paid by                                                   10 August 2018

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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