Polar Capital Global Healthcare Growth and Income Trust has announced further details of its proposals for the future of the company.
Subject to the approval of shareholders and final regulatory approvals as required, it is proposed that:
- the existing investment mandate will be changed to a growth mandate. They expect to pay a dividend going forward, but at a lower level than before. The initial rate of dividend following the implementation of the proposals is expected to be around 2p per ordinary share per annum (based on a portfolio of GBP225 million);
- the name will be changed to Polar Capital Global Healthcare Trust plc;
- an issue of new ordinary shares will be made by way of an institutional placing, an offer for subscription and an open offer (entitling existing shareholders to one new ordinary share for every two ordinary shares held);
- in order to provide structural gearing, an issue of zero dividend preference shares (ZDPs) will be carried out by a wholly owned subsidiary, on the basis that one ZDP with an initial capital entitlement of GBP1 will be issued for every GBP8 of net assets attributable to the ordinary shares immediately following the implementation of the proposals. The ZDPs will have a seven year life and the gross redemption yield will be 3 per cent. per annum; and
- a tender offer will be made to all eligible shareholders enabling those who so wish to realise all or part of their investment at the prevailing net asset value per ordinary share less costs.
The price at which new ordinary shares will be issued and at which shares validly tendered will be repurchased will be prevailing net asset value per share (after providing for certain costs associated with the proposals estimated at 0.4 per cent. of net assets). The new ordinary shares will in addition bear a placing fee payable by subscribers of 1.25 per cent.
As part of the proposals and with the approval of shareholders, the Articles of Association will be amended so that the existing commitment to wind up the company on or around 31 January 2018 will be deferred by seven years to 1 March 2025.
The proposals will also be conditional on the company’s net assets immediately following implementation being not less than GBP200 million (excluding any amount attributable to the ZDPs).
It is expected that a prospectus and shareholder circular setting out full details of the proposals and convening a shareholder meeting will be published shortly and that settlement of the share issues and tender offer will be in the week commencing 19 June.
PCGH : Polar Capital Global Healthcare says more on its future