Proposed cancellation of shar

RNS Number : 6204F

Midas Income & Growth Trust PLC

10 October 2008

 



Midas Income & Growth Trust plc

Proposed cancellation of share premium account

The Company announces its intention to cancel its share premium account and create a new special distributable reserve. A circular has been posted to warrantholders and shareholders containing details of the proposal and a notice of a Warrantholders' Meeting and an Extraordinary General Meeting which are proposed to be called for 10.30 a.m. and 11.00 a.m. respectively on 27 October 2008 at One Bow Churchyard, Cheapside, London EC4M 9HH in order to pass the necessary resolutions.

Proposal

At the Company's annual general meeting held on 9 September 2008, the Company was granted a general authority to buy back the Company's shares in the market subject to certain price restrictions and only if such purchases were considered to be in the interests of shareholders as a whole.

The Board considers that it is in the best interests of Shareholders and Warrantholders to have as much flexibility as possible to manage the share price discount to net asset value and to facilitate share buy backs. This flexibility has been reduced by the Company's repurchases of its own shares and falling equity markets and the Company's reserves available for distribution have been diminishing.

The Board does not anticipate issuing new shares in the immediate future and accordingly, in order to ensure that the Company has sufficient distributable reserves, the Company is proposing (subject to Shareholder and Warrantholder approval and approval by the High Court of England and Wales) to cancel the Company's entire share premium account and establish a new special distributable reserve which would be available to finance share buybacks. 

A copy of the circular will shortly be available for inspection at the FSA's Document Viewing Facility, which is situated at:

UK Listing Authority

The Financial Services Authority

25 The North Colonnade

Canary Wharf

London

E14 5HS

Enquiries:

Alan Borrows, Midas Capital Partners Limited

Tel: [phone]

Charles Mearns, Aberdeen Asset Management PLC

Tel: [phone]

 

END

 

 

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