Downing Strategic Micro-Cap to pay special from FireAngel sale proceeds

Downing Strategic Micro-Cap (DSM) has announced that, following an agreed and approved bid for one of its holdings, FireAngel Safety Technology Group Plc, intends to return the value of its investment in FireAngel to shareholders as soon as possible, via a third special dividend, in line with its stated intention of returning cash to shareholders. DSM expects the third special interim dividend to be at least 7 pence per share, equivalent to, in aggregate, £3.2m and paid to shareholders by mid-late July 2024.

This is expected to result in DSM having returned approximately 74 per cent. of its NAV as at 28 February 2024 (being the date on which shareholders approved the managed wind-down of the Company) through special dividends. The Board and Investment Manager expect the remainder of the Company’s portfolio to be realisable at least at carrying value and, given current progress, the Board expects to announce a fourth special dividend in August 2024.

DSM says that other realisations of investments continue to progress well, and the Board will continue to provide shareholders with updates as and when appropriate.

Comments from Hugh Aldous, chairman of DSM

“The sale of FireAngel further enhances our programme of returning capital to shareholders, which has been proceeding efficiently and ahead of expectations. We are delivering on our promise to shareholders, who overwhelmingly voted for the wind-down of the Company.  Those who have remained invested are seeing the reward.”