On 10 January 2022, we wrote an article detailing Jupiter Emerging & frontier Income’s (JEFI’s) plans to both amend its redemption facility (under the proposals, the redemption facility would be offered every three years – next to occur in June 2024 – with a maximum being 20% of the company’s outstanding ordinary share capital at each redemption event) and to put in place a three-yearly continuation vote (click here to read).
Further feedback suggests proposals will not be accepted
At the time, JEFI’s chairman said “Taking into account the views of shareholders, the Board believes that the interests of the Company and of shareholders as a whole will be better served by amending the Redemption Facility in a manner which will limit the scale of future outflows, while at the same time offering shareholders a range of protections, including a triennial redemption programme and continuation vote.” However, JEFI has now published an update saying that, “The Company has received further feedback from its shareholders since the Company’s earlier announcement and the Board, based on that information, now considers that the support for the Proposals is not sufficiently broad to allow the Board to recommend that they be implemented.” Given this, JEFI’s board has decided not to proceed with the business of the General Meeting on 10 March (although, for procedural reasons, the board plans to open the meeting and then adjourn it indefinitely). The board has asked shareholders not to seek to attend.
The board is reviewing its options
As a result of these developments, JEFI’s board say that is reviewing further options but says that it does not consider it appropriate to make a recommendation on Resolution 2, regarding the continuation of the Company, until this process has been completed. A further update will be provided ahead of the Company’s AGM to be held on 28 March 2022.