Latest News
Alpha Tiger Property (ATPT) has invested GBP 4 million into The Freehold Income Trust, an open-ended unlisted fund that holds property in the UK. This fund produces a post-tax income stream in the region of 4.4%. It is managed by Close Brothers and has monthly dealing facilities. The company sees this as a short-term opportunity which yields more than cash on deposit.
Arc Capital Holdings (ARCH) saw one of its holdings list on the Hong Kong Stock Exchange after a successful IPO this week. Arc specialises in retail, consumer goods and consumer services sector companies primarily in China. Goodbaby, one of its top ten holdings at end June 2010, has completed its IPO, with the retail tranche more than 1,450 times oversubscribed. This makes it the third most sought-after IPO in the history of the Hong Kong Stock Exchange.
Burford Capital (BUR) has announced a placing of approximately USD 175 million, comprising 100 million shares at 110 pence each. Shareholder approval is being sought and, if successful, the shares are expected to be admitted to AIM on 10 December.
Cambian Global Timberland (TREE) has completed the sale of some land in Texas. Net proceeds will be in the region of USD 18 million, of which more than USD 5 million will be used to repay borrowed capital. The company expects to invest the remainder in higher return projects, including Brazil.
Smaller company specialists Chelverton Growth Trust (CGW) have announced a proposed tender offer to repurchase up to 10% of the company’s issued share capital. This is a tiny fund, at less than GBP 4 million in value, whose shares trade at a discount to NAV exceeding 26%. At the AGM in 2011, shareholders will be asked to vote on whether the company winds up or continues for a further three years.
CQS Rig Finance (RIG) has repaid its unsecured loan facility to RBC Cees Trustees Ltd, in keeping with its commitment to reduce leverage. Some good news for shareholders is that this was done without incurring a penalty fee.
One of the oldest investment trusts, Electric & General (ENG), will be disappearing from our radar soon. The fund has traded at an ever-wider discount since the market troubles of 2008 and, following a review of options to address this, the board is proposing to wind up the company. Shareholders will be offered the choice between rolling their holding into an open-ended fund run by existing manager Taube Hodson Stonex Partners, or taking cash. Full details will be published in due course. Launched in 1890, the fund has been run by THS since September 2004 and is one of the stalwarts of the Global Growth sector. That said, it’s encouraging to see a board taking such decisive action in the best interests of shareholders.
The AGM for FRM Credit Alpha GBP (FCAP) was held on 24 November, at which shareholders did not pass the resolution to continue the company. The board is now consulting shareholders regarding the wind-up or reconstruction of the company and further details are expected in due course.
Gartmore Growth Opportunities (GGOR) held both a Class and General Meeting on 29 November and both proposals were overwhelmingly approved (to merge the company with Artemis Alpha Trust). The proposals remain conditional until approved at the Second General Meeting, to be held 10 December and shareholders of Artemis Alpha Trust must also approve the proposal. They will be voting on 7 December.
Shareholders in Jupiter Dividend & Growth (JDT) approved the continuation of the trust in October and, as a result, the ZDP exit shares have been cancelled, effective 30 November.
Local Shopping REIT (LSR) has entered into a joint venture with Pramerica Real Estate Investors to invest in retail property in the UK. The JV plans to commit around GBP 100 million (including gearing) for investment in the UK, of which Pramerica will put up GBP 30 million, some 70% of the capital, and Local Shopping the remaining 20%, GBP 7.5 million.
Lonzim’s recent placing (LZM) has raised just under GBP 5 million from both new and existing shareholders. The placing shares represent around 32.9% of the company’s enlarged share capital.
Macau Property Opportunities (MPO) has agreed a new loan facility to refinance its original loan of HKD 626.93 million. The new loan has a term of five years and will be repaid in nine six-monthly instalments commencing November 2011. This has extended the previous loan by 3.5 years, at an interest rate that is 80 basis points lower than the original facility.
Property company MedicX (MXF) is offering shareholders the opportunity to take the dividend payable for the period 1 July to 30 September in shares rather than cash. To qualify, shareholders must lodge their forms by the close of business on 8 December. The price of a new ordinary share under the scrip scheme has been set at 73.05 pence. This compares with a closing price on 29 November of 72.5 pence.
At the EGM on 15 December, shareholders of Morant Wright Japan Income (MWJ) will be asked to approve the appointment of a liquidator and the company will be placed in voluntary liquidation. This follows the wind-up of Melchior Japan, due to complete on 10 December, and takes the number of Japanese investment companies to just eight.
Nordic Land (NLD) has completed the sale of properties at Sicklaon, but the buyer has retained SEK 12 million from the total cost of SEK 35 million until such time that Lehman Brothers International (Europe) is able to locate and deliver the mortgage certificates for these properties. The retained money is in a pledged account with Nordea Bank and will be released upon delivery of these certificates to the buyer. Nordic Land has now completed the disposal of its entire portfolio.
Off-Plan Ltd (OPF) has now received settlement of its insurance claim for a GBP 1.1 million deposit paid to Henry Homes (Wallington) Ltd, which went into insolvent liquidation earlier this year. The company now holds just cash, in the region of GBP 1.8 million, and the board is considering the timescale for returning this cash to shareholders and winding up the company.
Martin Lau has followed in the footsteps of his fellow managers Angus Tulloch and David Gait at Pacific Assets (PAC) and bought shares worth GBP 100,000. We like the conviction this shows and the fact that the managers are aligning their interests with their shareholders’.
The board of Personal Assets (PNL) are taking action in respect of their premium control policy. The fund has been trading at a modest premium to NAV almost consistently since June 2008. The directors plan to increase the number of shares that may be issued under the Prospectus to help manage this premium.
The deputy chairman of Raven Russia (RUS), Anton Bilton, has gifted 275,000 ordinary shares to the Bilton Charitable Foundation, of which he is a trustee. His personal interest remains at more than 3.25%, some 17 million shares.
Speymill Deutsche Immobilien (SDIC) has requested a suspension of trading in its shares, effective 30 November. Receivers have been appointed to all of its subsidiary property holding companies, excluding GOAL Service Gmbh, its investment manager appointed in June this year.
The board of Trading Emissions (TRE) has confirmed it has received an approach to acquire the company’s entire portfolio. Given it has already indicated its desire to sell the private equity portfolio and realise assets, this approach is being given due consideration.
Director Appointments
Bankers (BNKR) – Peter Sullivan
Trinity Capital (TRC) – John Chapman
Director Resignations/Retirements
Dexion Absolute EURO (DABE) – Peter Walsh
Henderson Far East Income (HFEL) – Christopher Spencer
