Offer Update Response to the PIGIT announcement
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND OR JAPAN.
Securities Trust of Scotland plc
Response to the PIGIT announcement 29 April 2005
The Board of Securities Trust notes yet another announcement made today by
PIGIT. As the Board said in its original document dated 23 March 2005,
Securities Trust was, and is, a very different investment proposition to PIGIT
with a greater emphasis on the income component of total return. If however,
shareholders wish to opt for a trust with more emphasis on capital growth, but a
lower yield, than Securities Trust then, under the Securities Trust Proposals,
they can choose Lowland, which is a better option than PIGIT, as the table below
demonstrates. The table below uses PIGIT numbers as PIGIT announced them today
but also provides comparable Lowland numbers which PIGIT failed to include.
Returns as at 1 March 2005
Based on £1,000 invested at closing price on 1 March 2000
PIGIT Lowland Lowland
Advantage
Market Value £1,898 £2,195 +£297
(Based on
closing prices)
Share Price 129.8% 160.9% +31.1%
Total Return
Net Asset Value 90.4% 102.5% +12.1%
Total Return
Chairman-designate, Neil Donaldson said
"PIGIT's announcement misses the point. The Board of Securities Trust is
offering shareholders real choice; 100% cash at a higher value, a trust that
offers increased income or Lowland, a trust whose performance is better than
that of PIGIT as these five year numbers show.
We still believe both sets of shareholders would welcome PIGIT withdrawing its
offer, thereby avoiding more unnecessary costs and the poor use of everyone's
time."
Terms defined in the Securities Trust Circular dated 23 March 2005 have the same
meanings in this announcement.
Enquiries:
Neil Donaldson / Anita Frew
Securities Trust of Scotland plc via 020 7353 4200
Angus Gordon Lennox
JPMorgan Cazenove Limited 07768
503516
Kirstie Hamilton / Kate Inverarity
Tulchan Communications 020 7353 4200
JPMorgan Cazenove Limited is acting for Securities Trust in relation to the
matters referred to in this announcement and no one else and will not be
responsible to anyone other than Securities Trust for providing the protections
offered to clients of JPMorgan Cazenove Limited nor for providing advice in
relation to the matters referred to in this announcement.
JPMorgan Cazenove Limited of 20 Moorgate, London EC2R 6DA, which is authorised
and regulated in the United Kingdom by the Financial Services Authority, has
approved the contents of this announcement for the purposes of Section 21 of the
Financial Services and Markets Act 2000.
END
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund