Troy to absorb Cameron – Troy Income & Growth Trust has reached agreement, in principle, on the terms of a merger with Cameron Investors Trust. This would be effected by way of a scheme of reconstruction of Cameron under section 110 of the Insolvency Act 1986, which will result in the voluntary liquidation of Cameron and Cameron shareholders rolling over their investment into new shares in Troy. Taking into account the Troy’s existing shareholding in Cameron, completion of the scheme will result in an increase in the Troy’s net assets of approximately £11 million.
Cameron’s portfolio has been aligned with the current market view of the investment manager of Troy Asset Management (which is the manager for both trusts). The scheme will be effected on an adjusted NAV for NAV basis. Cameron shall bear all of its own costs and the Troy’s costs (including the documentation costs) associated with the scheme. The issue of shares under the scheme is therefore not expected to be dilutive to the NAV per share of Troy’s existing shares.
The costs are estimated at £400,000. Cameron will pay an 8p per share dividend to its shareholders beforehand.
[QD comment: Apologies to our readers – Morningstar got the number of shares in issue for Cameron wrong by a factor of 10 and we used this in two publications – the Investment Companies Roundup for July and the Quarterly Round Up for the second quarter of 2019. The value of Cameron should have been 10x smaller than we reported. Morningstar make errors quite regularly but we try to spot them and get them corrected before we publish anything, sorry we didn’t spot this one.]
TIGT / CIT : Troy to absorb Cameron