Northern Investors is proposing to return a further £6.4 million to Shareholders, representing 257.5 pence for each Ordinary Share currently in issue, utilising the B Share Scheme that was approved by Shareholders on 19 January 2017. The company says that, under its proposals, Shareholders will receive 5.15 B Shares for each Ordinary Share held by them on 26 May 2017 by way of a bonus issue and that, shortly after their issue, the B Shares will be redeemed at a price of 50 pence for each B Share then in issue. The company says that shareholders are expected to receive the proceeds of the redemption by 12 June 2017 and that, in addition, Shareholders will receive a small fixed rate dividend on the B Shares.
No share certificates are to be issued in relation to the B Shares and the B Shares will not be listed or traded on the London Stock Exchange or any other recognised exchange. The B Shares will have limited rights, including the right to a dividend at a small fixed rate. The company says that the redemption proceeds should, under current legislation, be taxed as capital for UK individual Shareholders and that any dividend paid in respect of the B Shares, would be an income payment and will be paid separately from the redemption proceeds.
Northern Investors is a private equity investment trust. In July 2011 shareholders approved a change in investment strategy, whereby the trust ceased making new unquoted investments and began an orderly realisation of the portfolio with a view to returning funds to shareholders through a series of tender offers over a period of several years.
Northern Investors proposes capital return of £6.4m : NRI