Henderson Global Trust, chaired by Richard Hills (pictured), has announced that it has been undertaking a strategic review of the trust and, after consultation with its advisers, the board has concluded that certain shareholders would prefer access to a global income strategy in the current market environment while others may wish to retain exposure to a global growth strategy. Reflecting this, the board says that it has agreed, in principle, the terms of a combination with Henderson International Income Trust, which offers a global income investment strategy. Alternatively, The trust’s board has agreed, in principle, with the Board of The Bankers Investment Trust for Bankers to act as an alternative rollover option for shareholders of Henderson Global. Bankers follows a global growth strategy.
Henderson Global’s Board say that they aware that there are significant challenges for a company that does not have sufficient scale to remain relevant to investors in the global sector and that opportunities to grow are currently limited. The Company’s shares have traded at an average discount of 10.7% over the last 12 months and the Company has been active in buying back shares with 4.2% of the Company’s issued share capital repurchased over this period. They say that the ongoing buyback programme has served to mitigate the discount at which the Company’s shares trade but has consequently reduced the size of Company, potentially narrowing the pool of investors that can support HGL. The Board is now of the view, following its strategic review and after consultation with the Company’s largest shareholders, that the Company’s current approach is not sustainable over the longer term. This led the board to review the strategic options for the company and to consider potential rollover options.
With regards to the combination with Henderson International Income Trust, Henderson Global’s Board believes that the combination would provide its current shareholders with an investment in a trust with a stronger rating and that the enlarged entity would have the sufficient scale to be attractive to a wider pool of investors. The transaction would be effected by way of a scheme of reconstruction of Henderson Global resulting in the voluntary liquidation of the company and a roll-over of shares into Henderson International Income Trust with shareholders also being given the option to elect to roll-over into Bankers. The transaction would be subject to shareholder approval. A circular convening a general meeting to approve the proposals is expected to be sent to shareholders in due course.
Henderson Global to offer rollover into Henderson International Income or Bankers Trusts : HGL, HINT, BNKR