Update to the Redemption Facility
Summary by AI BETAClose X
MOBIUS INVESTMENT TRUST PLC (the "Company" or "MMIT")
LEGAL ENTITY IDENTIFIER ('LEI'): 21380033EKFQS15X1W22
21 October 2025
Update to the Redemption Facility
In accordance with the Company's Articles of Association, the Company operates a voluntary redemption facility every three years, with the next redemption facility taking place on 1 December 2025, through which shareholders may request the redemption of all or part of their holding of redeemable ordinary shares of nominal value £0.01 each ("Ordinary Shares") for cash.
The Board of the Company proposes that, following this year's redemption facility, the Company's triennial voluntary redemption facility shall move to a biennial cycle. Shareholder approval for changes to the Articles of Association to amend the Company's voluntary redemption facility from a triennial cycle to a biennial cycle will be sought at the Company's next annual general meeting, expected to be in May 2026. Assuming this change is approved by shareholders, following this year's redemption facility the Company's next voluntary redemption facility will occur in 2027 and every two years thereafter.
There are no changes to the Company's upcoming redemption facility this year and there is no requirement for shareholders to take any action should they wish to retain their Ordinary Shares.
INFORMATION ON THE REDEMPTION FACILITY
The following information on the Company's redemption facility is unchanged to that announced on 3 October 2025.
Shareholders submitting valid requests for the redemption of Ordinary Shares will have their shares redeemed at the Redemption Price. The Company may, prior to the Redemption Point, in its sole discretion, invite investors to purchase Ordinary Shares which are the subject of Redemption Requests pursuant to a matched bargain facility. In addition, the Company may, subject to law and regulation, purchase Ordinary Shares which are the subject of Redemption Requests on-market via an intermediary pursuant to an existing shareholder authority. The price at which such transfers or purchases will be made will not be less than the Redemption Price which the Shareholder requesting redemption would have received if the Redemption Price had been determined by reference to the Dealing Value per Ordinary Share applicable on the relevant Redemption Point (see further below). Shareholders will be notified after the Redemption Point whether their Ordinary Shares have been redeemed by the Company under the redemption facility at the Redemption Price or sold to incoming investors under the matched bargain facility or purchased by the Company.
The Directors may elect, at their absolute discretion, to calculate the Redemption Price on either of the following bases:
1. The Redemption Price shall be equal to the Dealing Value per Ordinary Share calculated as at the appropriate Valuation Point on the appropriate Redemption Point, being the value of all the assets of the Company less its liabilities, including such provisions and allowances for contingencies and accrued costs and expenses payable by the Company, including a provision for the costs that would be incurred in disposing of the Company's investments; or
2. The Directors may elect to calculate the Redemption Price by reference to the amount generated upon the realisation of a Redemption Pool created for the purpose of funding the redemption.
Shareholders wishing to request the redemption of all or any of their certificated Ordinary Shares at the proposed Redemption Point should deliver to the Company's Registrar a duly completed Redemption Request form together with (i) in the case of certificated shareholders, their share certificate; or (ii) in the case of uncertificated shareholders, a transfer of their Ordinary Shares from their CREST account to the Company's Registrar's CREST account (3RA18, member account MMIRED01) via a Transfer to Escrow ("TTE") instruction, in accordance with the timetable set out below. Redemption Request forms are available from the Company's website www.mobiusinvestmenttrust.com or from the Company's Registrar, Computershare Investor Services PLC (details below).
The relevant dates for the 2025 Redemption Point are outlined below:
|
3 November 2025 |
Latest date for receipt of Redemption Requests and certificates for certificated shares. |
|
1.00 pm on 3 November 2025 |
Latest date and time for TTE instructions for uncertificated shares via CREST. |
|
6.00 pm on 1 December 2025 |
The Redemption Point. |
|
On or before 15 December 2025 |
Company to notify Redemption Price and dispatch redemption monies; or |
|
On or before 31 December 2025 |
Balance certificates to be sent to shareholders. |
Shareholders wishing to request a redemption of their Ordinary Shares are strongly advised to seek independent professional tax advice as to the consequences of doing so, in light of their own particular circumstances.
It should be noted that, for UK tax purposes, a redemption of Ordinary Shares by the Company will generally be treated as involving both (i) a disposal of Ordinary Shares by the shareholder for the purposes of UK capital gains tax (or, as applicable, corporation tax on chargeable gains) and (ii) an income distribution from the Company. The amount of the income distribution element would be calculated by reference to the difference between the redemption proceeds received by the shareholder and the amount that for tax purposes is treated as paid-in capital attributable to the Ordinary Shares redeemed. Generally, the amount of paid-in capital attributable to the Ordinary Shares for these purposes is the amount that was subscribed for them by the original subscriber when they were first issued by the Company, though it may be less if there have been subsequent transactions that are treated as having returned capital on the shares. Accordingly, the amount treated as paid-in capital attributable to the Ordinary Shares for these purposes may be less than the shareholder paid to acquire their Ordinary Shares.
For UK tax resident individual shareholders, the distribution element arising on a redemption of Ordinary Shares by the Company will generally be subject to income tax as if it were a dividend, but to the extent that this element is subject to income tax it should generally then be excluded from the calculation of any chargeable gain arising on the disposal of Ordinary Shares pursuant to the redemption.
For shareholders within the charge to UK corporation tax, the distribution element arising on a redemption of Ordinary Shares is likely to qualify for exemption from corporation tax, but it should be noted that this exemption for distributions is subject to a number of conditions and independent professional tax advice should accordingly be taken. Based on HM Revenue & Customs published practice, the distribution element arising on a redemption of Ordinary Shares should, for corporation tax purposes, generally be disregarded in determining whether a chargeable gain arises on the disposal of Ordinary Shares pursuant to the redemption (though the treatment of a buy-back of Ordinary Shares, as distinct from a redemption, would be different in this regard).
Shareholders should also note that their tax treatment may be different if their Ordinary Shares are acquired by a third party in the market pursuant to the "matched bargain" facility, rather than being redeemed by the Company directly. In this case, the shareholder should generally not be treated as receiving an income distribution element from the Company and instead the proceeds should generally be treated as the consideration for a disposal of the Ordinary Shares for the purposes of capital gains tax or, as applicable, corporation tax on chargeable gains.
The comments above are general in nature and not intended to be an exhaustive summary of all potentially relevant tax considerations. They do not constitute, and should not in any way be relied upon as, or treated as a substitute for, tax advice. All Shareholders should seek their own independent professional tax advice in light of their own particular circumstances, including those who may be subject to tax in any jurisdiction other than the United Kingdom. Shareholders should note that no clearances or assurances have been sought from HM Revenue & Customs in relation to the proposed arrangements.
Further details of the redemption facility are set out in the Company's Articles of Association and summarised in Part 5 of the prospectus issued by the Company on 10 September 2018 (the "Prospectus"). Such details are also available from the Company Secretary on request.
The Directors of the Company have discretion over the operation of the redemption facility and the calculation of the Redemption Price. The Directors are minded to approve all valid redemption requests unless there are exceptional reasons why this would be contrary to the interests of Shareholders as a whole.
Defined terms in the announcement have the same meaning as set out in the Articles of Association. Copies of the Articles of Association and the Prospectus can be obtained from the Company Secretary or can be found on the Company's website, www.mobiusinvestmenttrust.com.
Enquiries:
Company Secretary
Frostrow Capital LLP
Kerstin Rucht (Tel: 0203 709 8732)
Richard Plaskett (Tel: 0203 709 2407)
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS13 8AE
Tel: +44 (0) 370 703 6304
Corporate Broker
Peel Hunt LLP
Luke Simpson / Huw Jeremy
Tel: 0207 418 8900
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