- European Opportunities Trust ( EOT) posted a 0.4% fall in NAV for the 6 months to 30 November 2022, underperforming its benchmark, the MSCI Europe Total Return Index, which grew 2.1%. Over the past 6 months the discount, which was 13.8% at the last close, has generally been outside the board’s desired parameters. Management believes this to be a reflection of the ”somewhat abnormal market conditions” and as such have repurchased a total of 1,144,742 shares during the period. Despite relatively disappointing recent returns, management remains confident in its approach, targeting a concentrated portfolio of high-conviction companies with strong moats and global revenues. There was also an announcement of a reduction in management fees. The existing charges – of 0.90% per annum for assets up to £1bn and 0.80% per annum on any net assets over this amount – have been changed to 0.80% per annum of net assets up to £1bn; 0.70% per annum on any net assets over £1bn up to £1.25bn; and 0.60% per annum on any net assets over this amount, with effect from 1 June 2023. The company also reminded investors that an ordinary continuation resolution will be proposed at the AGM in November 2023.
- Nippon Active Value Fund (NAVF), a Japanese-focused investment firm launched a tender for T&K TOKA Co, a manufacturer of ink, resin, and associated products, at ¥1,300 per share for up to 4,911,564 common shares. The offer closed without enough shares tendered so nothing was acquired.
- Circle Property (CRC) is seeking shareholders’ approval to cancel the admission of its shares trading on AIM following the sale of its largest assets. It has sold Concorde Business Park for £12.3m and following completion (set for the end of March) will be regarded as a ‘cash shell’ (having ceased to own all or substantially all of its assets). The disposal is therefore conditional on the consent of shareholders at an Extraordinary General Meeting (set for 22 March). A resolution approving the future disposal of the company’s final remaining asset, 300 Pavilion Drive, will also be put to shareholders. The proceeds from all sales will be returned to shareholders through proposed B shares issues, the first of which is expected to occur in March.
- Grit Real Estate Income Group (GR1T), a pan-African real estate company, has announced a ‘deemed disposal’ of a 17.32% stake in BHI, a hospitality company that owns three hotels in Mauritius. It also announced the potential further exit by Grit of its remaining interests in the company. BHI was set up as a business venture between New Mauritius Hotels Limited (NMH) and Grit. The hospitality property company currently owns three 4-star hotels in the North of Mauritius, namely Victoria Beachcomber, Mauricia Beachcomber and Cannonier Beachcomber, operated by NMH under the Beachcomber brand. BHI paid Grit €14.5m in cash (through a dividend) for the stake, resulting in Grit’s interests in BHI being diluted from 44.4% to 27.1% as at 31 December 2022. Grit has signed a merger agreement for its wholly owned subsidiary that owns the interest in BHI, to merge with BHI. BHI will issue preference shares, offered by way of a public offer and listed on the Official List of the Stock Exchange of Mauritius, to facilitate Grit’s exit of its interest in BHI for an expected net cash payment of €25.8m.
We also have news from Schroder British Opportunities and Third Point