Jupiter Green Investment Trust PLC : Proposals ...
3 April 2012
Jupiter Green Investment Trust PLC
Proposals for alteration of rights of existing share capital
The Board of Jupiter Green Investment Trust PLC (the "Company"), having reviewed the Company's continued strong Net Asset Value ("NAV") performance relative to its peers, size and market capitalisation, has decided to announce the following Proposals which are designed to enable the Company to grow its market capitalisation, increase liquidity and reduce the current discount to NAV at which its ordinary shares ("Shares") trade.
These proposals are subject to regulatory and shareholder approvals. The timing of this announcement is intended to enable the Company to re-continue its Share buyback policy, which has been in abeyance during recent weeks.
The Company's total assets as at 31 March 2012 were estimated at £36 million. The Board recognises that many institutional investors prefer to invest in closed ended investment vehicles with higher market capitalisations and/or greater liquidity than the Company. The Company has been in the unfortunate position where it is too small to appeal to the widest universe of potential investors but has been unable to increase its market capitalisation through conventional issuance because of the discount to NAV per Share at which its Shares currently trade.
The Board proposes, subject to regulatory and shareholder approvals, to introduce an annual subscription right, to be embedded within the existing share rights, which will enable shareholders of the Company to subscribe for one new Share for every ten Shares held on 31 March in each year at a price equal to the audited undiluted NAV per Share on the preceding 31 March.
By way of an illustration, based on the discount to NAV of 15% (as of 2 April 2012), and the estimated undiluted NAV as at 31 March 2012 of 108p, the share price of 92p would need to increase by 17% over the period between now and 31 March 2013 in order for the new subscription rights to have any intrinsic value attributable to them. The Board are confident that this order of growth is achievable for the Company.
This structure is intended to have a similar economic effect to an issue of subscription shares or warrants, save that the rights (and any associated value) will be embedded within the Shares themselves, rather than in a separately traded security.
The Board believes that the introduction of these subscription rights, in particular as a result of the potential option value embedded in the Shares, should contribute to the Shares trading at a lower discount to NAV per Share than they do at present. The annual subscription right will also, depending on the Company's performance, potentially increase the size of the Company over time in the event that the subscription rights are taken up.
The Board is committed to seeking to limit the level and volatility of the discount to NAV at which the Shares may trade, and following approval of the Proposals, believes that the potential for growth over time will allow the Company to continue its share buyback programme.
The Proposals are subject to shareholder consent and regulatory approvals. Further details of the Proposals will be announced in due course.
Enquiries:
Jupiter Green Investment Trust PLC
Richard Pavry (Investment Trusts) +44 20 7314 4822
Faith Pengelly (Company Secretary) +44 207 314 4915
Alicia Wyllie (Media) +44 207 314 5573
Oriel Securities +44 207 710 7600
Joe Winkley
Sapna Shah
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Jupiter Green Investment Trust PLC via Thomson Reuters ONE
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