Portfolio Update and intention to pay a dividend

Downing Strategic Micro-Cap IT PLC

30 May 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Downing Strategic Micro-Cap Investment Trust plc (the "Company")

LEI Number: 213800QMYPUW4POFFX69

Announcement of an agreed and approved bid for

FireAngel Safety Technology Group plc ("FireAngel")

Following the Company's announcement of its Second Special Interim Dividend on 28 May 2024, it has today been confirmed that the timetable in respect of the recommended offer for FireAngel, one of DSM's investee companies, by Intelligent Safety Electronics Pte. Ltd (the "Offer") has resumed, following the approval of the conditions required by the Secretary of State.  The date by which all conditions in respect of the Offer must either be satisfied or waived is now 27 June 2024.

In accordance with the Board's stated intention of returning cash to shareholders, the Company intends to return the value of its investment in FireAngel to shareholders as soon as possible and expects to be able to do so by way of a third special interim dividend of at least 7 pence per share, equivalent to, in aggregate, £3.2 million (the "Third Special Interim Dividend"). It is expected that the Third Special Interim Dividend would be paid to shareholders by mid-late July 2024.

That would result in the Company having returned approximately 74 per cent. of the Company's NAV as at 28 February 2024 (being the date on which shareholders approved the managed wind-down of the Company) through special dividends. The Board and Investment Manager expect the remainder of the Company's portfolio to be realisable at least at carrying value.  Given current progress the Board expects to announce a fourth special dividend in August 2024.

Other realisations of DSM's investments continue to progress well, and the Board will continue to provide shareholders with updates as and when appropriate.

Hugh Aldous, Chairman of the Company, commented:

"The sale of FireAngel further enhances our programme of returning capital to shareholders, which has been proceeding efficiently and ahead of expectations. We are delivering on our promise to shareholders, who overwhelmingly voted for the wind-down of the Company.  Those who have remained invested are seeing the reward."

For further information, please contact:

Chairman
Hugh Aldous	Tel: [phone]

Dickson Minto Advisers LLP
Douglas Armstrong	Tel: [phone]

Media Contacts - Garfield Advisory
Andrew Garfield	Tel: [phone]
Jason Nisse	Tel: [phone]

The person responsible for arranging for the release of this announcement on behalf of the Company is ISCA Administration Services Limited, the Company Secretary.

 

END