AXA Property proposes investment policy and name change – Following on from the appointment of Blake Nixon to the board last week (click here to read to more on this story) and consultation with shareholders, AXA Property (APT) is proposing a change in its investment policy today. APT’s board is proposing the company becomes an investor in undervalued British listed securities and, to this end, proposes that Worsley Associates be appointed as the trust’s investment advisor.
APT had been engaged in a managed wind-down of its European commercial portfolio since 2013. The change in investment policy follows on from the appointment of Blake Nixon, along with a number of associates to the board. This followed his block of a wind up motion last year. The new board believe that the company can deliver more value by continuing as an ongoing concern.
Only one asset remains
Since 2013, all except one of the properties then owned has been disposed of and returns made to shareholders have totalled £49.3m, equivalent to over 87 per cent of the company’s net assets when the managed wind-down commenced.
APT has just one real estate asset left on its balance sheet, Curno, a cinema in Italy. The company’s board believes that were it to retain its exiting strategy of a managed wind-down it would be likely to continue to be regarded as a forced seller of Curno. The company believes it now has a better chance of selling the cinema for more than its carrying value.
The fine print
Subject to shareholder approval, APT is proposing:
“(i) the new investment objective and policy be adopted; and
(ii) the company’s name be changed from “AXA Property Trust Limited” to “Worsley Investors Limited”
together the “Proposals”.
The board believes that the proposals present an attractive alternative to the existing realisation strategy, in particular because the board considers that the proposals will:
- improve prospects for long-term growth in the net asset value of the company through the implementation of the new investment policy using Worsley’s skills and expertise;
- allow the group to optimise the disposal of the existing Curno asset over time; and
- avoid the company incurring costs in connection with the winding-up of its legal structure.
The proposals will be subject to the approval of shareholders at an extraordinary general meeting. The board has received indications of support for the change of investment policy from shareholders representing some 45% of the company’s issued share capital. Further details regarding each of the proposals, and a notice of the extraordinary general meeting at which the resolutions to approve the proposals will be considered, will be set out in a circular, which it is expected will be posted to shareholders before the end of April.”
Worsley investment strategy
Worsley’s investment strategy allies the taking of influential holdings in smaller British listed companies selling at a deep discount to their intrinsic value with the employment of activism as necessary to drive highly favourable outcomes.
APT: AXA Property proposes investment policy and name change