River & Mercantile Micro Cap is handing back cash as assets hit £117m. On 16 January 2017, the Board reminded shareholders that, were the company’s net asset value to grow in excess of GBP100m, the directors intended to operate a redemption mechanism under which a portion of share capital may be redeemed compulsorily so as to return the NAV back to around GBP100 million. They believe that at this level of NAV the company is able to exploit fully the underlying investment opportunity in Micro Cap Companies.
The portfolio, which is managed by Philip Rodrigs with the support of the broader equity investment team at River and Mercantile Asset Management, has delivered strong investment returns, growing the NAV to approximately GBP117 million. Accordingly, River & Mercantile Micro Cap intends to implement its first compulsory redemption of shares.
Approximately GBP15 million, less the costs of the redemption, is to be returned to shareholders at a price based on the NAV per share as at close of business on 19 May 2017 (172.2p) and, accordingly, after deduction for expenses, the amount to be paid to shareholders for each redeemed share is 172.17p.
It is expected that payments will be made either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form) by 23 June 2017.
The redemption is being effected pro rata to holdings on the register at the close of business on 9 June 2017. Prior to the redemption the company had 68,507,569 redeemable ordinary shares in issue. All of the shares redeemed will be cancelled. No fractions of shares will be redeemed and so the number of shares to be redeemed for each shareholder will be rounded down to the nearest whole number of shares.
RMMC : River & Mercantile Micro Cap is handing back cash as assets hit £117m