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Jupiter Dividend & Growth Agrees Winding Up Proposals With Jupiter UK (ALLISS)

LONDON (Alliance News) - Jupiter Dividend & Growth Trust PLC on Wednesday said it has agreed ...

Alliance News 13 September, 2017 | 3:44PM
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LONDON (Alliance News) - Jupiter Dividend & Growth Trust PLC on Wednesday said it has agreed with Jupiter UK Growth Investment Trust PLC proposals under which it will be wound up voluntarily.

Jupiter Dividend & Growth has a fixed life and is due to wind up by November 30.

As a result, shareholders will be offered a choice of rolling over their investment on a cost and tax efficient rollover into new shares to be issues by Jupiter UK Growth or electing for a cash exit at the final asset value.

Jupiter Dividend & Growth had approximately GBP58 million of net assets at the end of August.

In a separate statement, Jupiter UK Growth said the new shares will be issued at a modest premium to their prevailing net asset value so that its existing shareholders should not suffer any material NAV dilution as a consequence of its participation in Jupiter Dividend & Growth's reconstruction.

"Subject to take-up, the anticipated benefits of this proposal to shareholders in the company include an increase in the future marketability and liquidity of the company's shares and a reduction of its ongoing charges ratio," Jupiter UK Growth said.

"In its planning for the company's winding up, the board has been conscious that the final asset ‎value attributable to the ordinary and common shares will be sensitive to the costs of any proposals. We are therefore pleased to note that Jupiter has proposed a payment to the company intended to limit the costs incurred to a level that would be expected on a standalone winding up," Jupiter Dividend & Growth said.

Jupiter Dividend & Growth will publish details of the proposals during October and will convene the necessary shareholder meetings to seek approval in November.

Shares in Jupiter Dividend & Growth were trading up 21% to 4.25 pence on Wednesday, while Jupiter UK Growth shares were down 0.2% to 321.00p.

By Karolina Kaminska;; @KarolinaAllNews

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Jupiter Dividend & Growth Trust
Jupiter UK Growth Ord 322.00 GBX 0.31
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