QuotedData’s Morning Briefing 16 November 2020 –
- UK Mortgages (UKML) is to convene an extraordinary general meeting on 4 December. Its board is recommending that UKML should continue operating as a publicly-traded investment company under a revised mandate offering an increased focus on enhancing liquidity and returns whilst continuing to seek to narrow the discount. This follows on from the announcements on 27 October, which we covered here. In this morning’s release, the following is noted “The board considers the proposal to offer a compelling proposition and has the potential to deliver better value to Shareholders than the alternative of winding down the company. The UK mortgage market is going through a period where margins have materially improved, enabling generation of significant returns. UKML offers exposure to a hard-to-compile, high performing portfolio which is difficult to replicate. Continuing to fund Keystone, including funding a second pool as described above, is expected to generate significant income and become central to UKML’s marketing proposition. The proposal will generate income that means the 4.5p per annum dividend is covered and dividend cover is expected to increase progressively thereafter. The manager expects an internal rate of return (IRR) in the region of 11.5-13.5% over the next three years as compared to an IRR for managed winding down of the company of 6-10%. To the extent that the share price does not respond and trade at or above NAV by the second anniversary of the extraordinary general meeting, the proposal includes provisions for further liquidity to be generated provided through the sale of assets or a managed wind down.”
- Baring Emerging Europe (BEE/BEMO) announced that, further to its announcement of 13 November 2020, and with effect from 15 November 2020, it has changed its name to Barings Emerging EMEA Opportunities. This name change follows the approval by shareholders of the company’s change of investment policy at a general meeting held on 13 November 2020. The company’s trading symbol will change from “BEE” to “BEMO” with effect from 17 November 2020, or shortly thereafter. QuotedData provided its view on the change in investment policy, on 19 October, when it was first announced. Click here to read the story.
We also have news of a placing by Bluefield Solar Income, as well as property investments by Supermarket Income REIT, Warehouse REIT, Stenprop and Home REIT.