On 25 July, JPMorgan European Discovery published details of a tender offer for 15% of its shares. Today, it has revealed that 81,976,778 shares were tendered, almost four times the maximum 21,160,028 shares that the company intends to buy back.

As not everyone tendered, anyone who tendered 15% or less of their shareholding will get out in full, and other shareholders who tendered more will be scaled back – getting out of roughly 6.3% of the excess shares over the 15% limit.

The tender price is 493.2671p per share. That is the equivalent of the NAV at close of business on 3 September, less a 2% discount and less the costs and expenses of the tender offer divided by the number of shares successfully tendered.

Cash will be distributed on 10 September (unless you still hold paper certificates, in which case money should arrive around 19 September).

As of last night, the trust was trading on a discount of 12.2% – all of the European small cap trusts are trading very close to this level. The board will continue to use the regular share buy back when it feels it is necessary.

[What looks like a big rush for the exit likely reflects the irresistible attraction of getting an immediate uplift on your shareholding. To be honest, were I a shareholder, I probably would have tendered my shares and then bought them back more cheaply.]

JEDT : JPMorgan European Discovery tender four times oversubscribed