The Board of JPMorgan Elect has announced that heads of terms have been agreed with the board of JPMorgan Income & Growth Investment Trust in relation to that company’s forthcoming reconstruction. JPMorgan Income & Growth, with £67.4m of net assets, has a fixed life and is due to wind up on or around 30 November 2016.
It is expected that the reconstruction of JPMorgan Income & Growth, which will be subject to the approval of JPMorgan Income & Growth’s shareholder, will be effected through a scheme of reconstruction under section 110 of the Insolvency Act 1986 and that JIGIT will be wound up voluntarily and its shareholders, in respect of their shares, will be offered a choice of the following:
- A tax and cost efficient rollover into new shares to be issued by Elect; and/or
- A cash exit at NAV less costs.
It is expected that, subject to the approval of Elect’s shareholders, each of Elect’s share classes would be made available as rollover options for JPMorgan Income & Growth’s shareholders. The new Elect shares will be issued at a modest premium to their prevailing net asset values such that Elect shareholders will not suffer any NAV dilution as a consequence of Elect’s participation in JPMorgan Income & Growth’s reconstruction.
Subject to take-up, the anticipated benefits of this proposal to shareholders of Elect include an increase in the future marketability and liquidity of the Company’s shares and a reduction of the ongoing charges ratio.
Further details on the proposed transaction, including an Elect shareholder circular and prospectus, will be made available later in 2016.
JPE / JPEI / JIGC / JIGC / JIGZ : JPMorgan Elect is rollover vehicle for JPMorgan Income & Growth