Aberdeen Asian Smaller Companies gives details of CULS conversion – Aberdeen Asian Smaller Companies (AAS) has made announcements in January and February about converting its 3.5% convertible unsecured loan stock 2019 (2019 CULS).
The company has announced further details in relation to the proposed restructuring of the 2019 CULS and the terms of a new class of convertible unsecured loan stock that it intends to issue (“2025 CULS”). A maximum of £37 million nominal of 2025 CULS, roughly equivalent to the market value attributable to the 2019 CULS, are to be issued under the proposals with a limited number of institutional and other investors, at the issue price of 100p per £1 nominal of the 2025 CULS.
Holders of the current 2019 CULS will be able either to participate in a “Reinvestment Scheme”. Stock holders have a choice; either the proceeds of sale of their 2019 CULS can be rolled into 2025 CULS or they can elect to convert their 2019 CULS into Ordinary Shares in accordance with their current terms.
The reinvestment is to be achieved by the buy-back of 2019 CULS (arranged by the broker Panmure Gordon) and the application of the proceeds to subscribe for 2025 CULS at the issue price of 100p per £1 nominal. [QD Comment: stock holders should take independent financial advice, as this event may cause capital gains tax to be chargeable]