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Gulf Investments survives tender offer

Gulf Investment Fund's new strategy is in place

Gulf Investments survives tender offer – 40,643,418 shares were tendered, equal to 43.96% of the shares in issue. The post tender offer share capital will therefore be 51,817,824 shares, above the minimum size condition set out in the tender offer circular to shareholders.

The directors will allocate the assets and liabilities of the company between a “Continuing Pool” and a “Tender Pool”. Then the board will instruct the investment adviser to sell the assets in the Tender Pool. The Tender Pool will bear all costs associated with the sale of these assets and the implementation of the tender offer.

The investment adviser currently anticipates that the orderly realisation of the investments in the Tender Pool will be completed by mid-January. A further announcement will be made in due course.

Future proposals

In light of the ongoing shareholder support, the board and the investment adviser intend to implement the following proposals (which shareholders will be asked to approve in the first three months of 2021:

  • the introduction of a semi-annual 100 per cent. liquidity mechanism;
  • the introduction of an enhanced dividend policy, targeting an annual dividend equivalent to 4% of NAV at the end of the preceding year, barring any unforeseen circumstances, to be paid semi-annually;
  • the introduction of a cost reduction programme effective from 1 January 2021, which will include a reduction in the fees paid to the adviser and a reduction in the fees paid to the directors; and
  • the deferral of the continuation vote that is required to be put to shareholders at the annual general meeting to be held in 2021, deferring such vote to 2023.

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