Ecofin Water & Power Opportunities held its continuation vote on 24 June 2016, which was approved by shareholders on the basis that the Board would implement its reconstruction proposals. under these, shareholders would be:
- issued with shares in Ecofin Global Utilities and Infrastructure Trust, a newly incorporated investment trust that would invest in listed global utilities and infrastructure equities and which additionally may hold, to a limited extent, related fixed-income securities (adjusted for any elections made and accepted for the cash exit);
- issued with shares in EF Realisation Company Limited, a newly incorporated Guernsey closed-ended investment company that would hold the illiquid assets currently owned by the fund; and
- offered a cash exit for up to 35 per cent. of net assets less the costs of the reconstruction proposals.
It also indicated it would offer ZDP Shareholders the option to roll over their investment into new shares in Ecofin Global.
At the time of the continuation vote, the level of cash exit was based on the net asset value and was designed to reflect an appropriate balance between providing an exit for those shareholders seeking to realise their holdings and maintaining sufficient scale within Ecofin Global post the implementation of the EWPO Scheme. Since the continuation vote circular was published, the Board notes that Ecofin’s net assets have increased and a number of ZDP Shareholders have elected to roll over their holdings into Ecofin Global.
Taking all of these elements into account the Board has decided to increase the level of cash exit from 35 per cent. to 50 per cent. This will provide those shareholders seeking a cash exit a greater opportunity to realise their holdings, while still retaining sufficient assets within Ecofin Global for it to remain relevant to investors.
Ecofin expects that the circular will be sent to shareholders on or around 22 August 2016.
ECWO : Ecofin offers more cash