Update on Circular for General Meeting
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" or "DSM")
LEI Number: 213800QMYPUW4POFFX69
Update on planned return of capital to shareholders
Further to the circular to shareholders published on 8 March 2024 (the "Circular") and following strong results announced by several investee companies, the Board of DSM is pleased to announce that the level of cash within the Company's portfolio against the Company's NAV as at 6 March 2024 (being the NAV referred to throughout the Circular) has increased to over 40%. The Board, therefore, anticipates that it will be able to undertake an issue and redemption of B shares on or around 4 April 2024 so as to return capital of approximately 26.0 pence per ordinary share to existing shareholders. This is significantly improved on the previous anticipated return of approximately £10 million in aggregate (representing approximately 21.5 pence per ordinary share), as set out in the Circular.
The issue and redemption of B shares is subject to the passing of the resolutions to be moved at the General Meeting of the Company being held on 3 April 2024, which together seek to approve the implementation of B shares schemes by the Company.
The remainder of the portfolio comprises investments in companies where there is a clear path to greater value than that currently reflected in the Company's NAV. Some of DSM's investee companies are currently in strategic review or bid situations that are likely to realise value over coming months.
As detailed in the Circular, it is the Board and Investment Manager's expectation that at least 50% of the Company's NAV (calculated as at 6 March 2024), will be distributed to shareholders by 30 June 2024. The Investment Manager intends to update shareholders on further portfolio developments shortly after the return of capital to be made in April.
Chairman, Hugh Aldous, commented: "As a Board we are committed to do the right thing for our shareholders and are pleased to see that, subject to receiving shareholder approval at our general meeting on April 3, our plans to wind down our portfolio and return capital to shareholders are well on track. As of today, we are able to confirm that thanks to recent developments, we are able to increase the amount of our initial distribution in April by approximately 20% and are more confident than ever of being able to have returned more than 50% of the current capital by end June. Progress to date bodes well for prospects of completing the return of 100% of capital to shareholders and capturing further premiums to NAV."
For further information please contact:
Chairman
Hugh Aldous tel: 020 7416 7780
Dickson Minto Advisers LLP
Douglas Armstrong tel: 020 7649 6823
Media Contacts
Garfield Advisory
Andrew Garfield tel: 07974 982337
Jason Nisse tel: 07769 688618
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