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JZ Capital Partners to cease dividend payments in favour of share repurchases

JZ Capital Partners has announced that, following a review and consultation with its largest Shareholders, its board that the current dividend policy, which seeks to distribute out of profits in each financial year in the form of dividends an amount equal to approximately three per cent of the Company’s net assets for that financial year, should be discontinued and replaced with a new strategy. The review was undertaken in view of the substantial discount to net asset value at which the Company’s Ordinary Shares to trade and the new strategy includes repurchasing shares, using distributable profits, when opportunities in the market permit and as the Company’s cash resources allow.

The company says that the decision to undertake any share repurchases will be a matter determined by the Board with the consent of the Company’s Investment Adviser, Jordan/Zalaznick Advisers, Inc. The board says that the new strategy will be kept under review, particularly with regard to the level of the discount, and, when the discount no longer justifies the continuation of the strategy, the Board says that it will consider returning to the payment of dividends. Reflecting the new strategy, the Company says that it does not intend to declare or pay a second interim dividend for the financial year ending 28 February 2017.

The implementation of the new strategy, and specifically the ability of the Company to repurchase its ordinary shares, requires the Company to submit a number of related recommended Proposals to Shareholders as well as to the holders of the Company’s convertible unsecured subordinated loan stock (CULS). Details of the Proposals are set out in a Circular the Company is posting to Shareholders in connection with the Proposals and, in the case of the CULS Holders, a separate Circular to CULS Holders which the Company is posting separately to those holders.

JZ Capital Partners to cease dividend payments in favour of share repurchases : JZCP

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