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Diverse Inc Trust (DIVI)

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Wednesday 08 April, 2020

Diverse Inc Trust

Voluntary Redemption of Ordinary Shares

THE DIVERSE INCOME TRUST PLC (the "Company")

VOLUNTARY REDEMPTION OF ORDINARY SHARES

YOU DO NOT HAVE TO TAKE ANY ACTION IF YOU WISH TO RETAIN YOUR SHARES.

Under the Company’s Articles of Association, the Company operates an annual voluntary redemption facility through which shareholders may request the redemption of all or part of their holding of redeemable Ordinary Shares of 0.1p each (“Ordinary Shares”) for cash on 31 May in each year.

There is no requirement for shareholders to take any action should they wish to retain their Ordinary Shares. As at close of business on 6 April 2020, the Ordinary Share price was 74.00p and the Net Asset Value (including current period revenue) was 77.54p per Ordinary Share, so the Ordinary Shares were trading at a 4.57% discount.

A redemption of Ordinary Shares may be subject to income tax and/or capital gains tax. In particular, private shareholders that sell their shares via the redemption mechanism could find they are subject to income tax on the gains made on the redeemed shares rather than the more usual capital gains tax on the sale of their shares in the market. However, individual circumstances do vary, so shareholders who are in any doubt about the redemption or the action required to be taken should consult their stockbroker, accountant, tax adviser or other independent financial adviser.

The investment objective of the Company is to provide shareholders with an attractive and growing level of dividends coupled with capital growth over the long term. None of the Directors of the Company will be redeeming any of their shares under the redemption facility this year.

Shareholders submitting valid requests for the redemption of Ordinary Shares will have their shares redeemed at the Redemption Price which is calculated on either of the following bases:

  1. The Directors may elect to divide each of the Company’s portfolio holdings in proportion to the percentage of shareholders opting for redemption and set it aside in a Redemption Pool to be sold via the stock market. When complete, the realisation proceeds after deduction of costs would be distributed to shareholders pro rata. It should be noted that the liquidation of a Redemption Pool can be expected to take some weeks or months, and the final capital sum may not amount to the initial valuation of the Redemption Pool; or
     
  2. If the percentage of Diverse Income Trust shares that opt for redemption is a modest proportion of the Company the Directors can set a Redemption Price that is equal to the Net Asset Value per Ordinary Share (including current period revenue) (the “Dealing Value”) prevailing on the last business day prior to the Redemption Point.

The Directors may elect, at their absolute discretion, to calculate the Redemption Price on the bases set out above, or the Company may arrange for such shares to be sold in the market at the Dealing Value (subject to the Directors’ discretion). At the date of writing the share price of the Diverse Income Trust is standing at a discount to the Net Asset Value, and if this was the case at the Redemption Point, then it is unlikely that there would be willing buyers of the redeemed shares at the Dealing Value.

The Directors are minded to approve all redemption requests unless there are exceptional reasons why this would be contrary to the interests of all shareholders.

The Directors note the uncertainties arising from the Covid-19 pandemic and will take these into consideration, acting in the best interest of all shareholders.

The Directors of the Company have full discretion over the operation of the redemption facility and the calculation of the Redemption Price.

Shareholders wishing to request the redemption of all or any of their Ordinary Shares at the proposed Redemption Point should deliver to the Company’s Registrar a duly completed Redemption Request form together with their share certificate or TTE instruction (in respect of shares held in uncertificated form) in accordance with the timetable set out below. Redemption Request forms are available on the Company’s website; www.mitongroup.com/private/fund/the-diverse-income-trust-plc/ or from the Company’s Registrar, Link Asset Services on +44 (0) 371 664 0321 or by email at [email protected]. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. The helpline is open between 9.00 am – 5.30 pm, Monday to Friday, excluding public holidays in England and Wales. Please note that Link Asset Services cannot provide any financial, legal or tax advice and calls may be recorded and monitored for security and training purposes.

The relevant dates for the May 2020 Redemption Point are outlined below:

29 April 2020 Latest date for receipt of Redemption Requests and certificates for certificated shareholders
3.00 pm on 29 April 2020 Latest date and time for receipt of Redemption Requests and TTE (transfer to escrow) instructions for uncertificated shares via CREST
5.00 pm on 29 May 2020 The Redemption Point
On or before 12 June 2020 Company to notify Redemption Price and dispatch redemption monies; or

If the redemption is to be funded by way of a Redemption Pool, Company to notify the number of shares being redeemed. Notification of Redemption Price and dispatch of redemption monies to take place as soon as practicable thereafter  
On or before 26 June 2020 Balance certificates to be sent to shareholders (where applicable)

Further details of the redemption facility are set out in the Company’s Articles of Association or are available from the Company Secretary.

Defined terms in this announcement have the same meaning as set out in the Articles of Association, a copy of which may be obtained from the Company Secretary.

8 April 2020

LEI: 2138005QFXYHJM551U45


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