Gulf Investment Fund (GIF) has published a circular and notice of extraordinary general meeting, proposing a vote on the members’ voluntary liquidation of the company, which follows GIF announcement on 9 September in relation to its tender offer that has triggered this continuation vote (if the tender had proceeded, it would have pushed the number of shares in issue below the 38m set by GIF’s board – click here to see our coverage of that announcement). The announcement also includes a timetable for suspension and cancellation of the company’s admission to trading.
The resolution to approve the proposals requires the approval of 75 per cent. or more of the votes cast by shareholders at the EGM. However, as GIF’s board says that it has already received irrevocable undertakings to vote in favour of the resolution from certain shareholders who, in aggregate, hold 34,053,155 shares, representing approximately 87.5 per cent. of GIF’s issued share capital, the vote is now a formality and GIF’s wind up a certainty. The vote is scheduled for 29 October with the suspension of GIF’s shares from trading expected on the same day. The first cash distribution to shareholders is expected in early-December.
[QD comment: As we said following the cancellation of the tender, we think this is a shame as GIF offers a unique exposure in the closed ended space – rapidly growing companies in the Middle East – and has performed very strongly, beating the equivalent open ended funds, while also offering an exposure that is difficult for the majority of smaller investors to access. A different environment, we believe, would have seen GIF trading at a decent premium, issuing stock and growing. Instead, it is being liquidated and investors have lost a compelling option as a result. Consolidation within the wealth management industry hasn’t helped as they require ever larger fund sizes but, as we have previously observed, it is the underlying clients that tend to lose out. There is now light at the end of the tunnel regarding the cost disclosure issue, which has weighed on all closed ended funds, although smaller funds such as GIF have found themselves at the sharper end of this. Some funds naturally reach the end of their life and need to be wound up but we think this one should have been worth saving.]
It is now early December when the proposed distribution is reckoned to take place. Any news of an exact date ?
We haven’t got any new information unfortunately, and we won’t get any because the liquidator doesn’t have to communicate with anyone other than creditors (including shareholders). Writing to the liquidator (Nicholas Mark Halsall of PricewaterhouseCoopers LLC) might elicit a response if nothing happens before the year end.
the first distribution took place as I recall qt the end of December. I was grateful for this, However that was referred to as the initial distribution thereby intimating that there would be one or more further distributions. Although suspended from trading the shares are still listed in my portfolio.
It is impossible to obtain any information elsewhere so I am hoping you can help.
Unfortunately, we are no better informed than you are. Once a stock delists, there is much less obligation to keep shareholders up to date. I have checked the companies register on the Isle of Man and the liquidation is not yet complete, so there may still be a final distribution to come. However, I would expect that this would be minimal, if anything, as the portfolio was fairly liquid and the proceeds of selling it off should have been in the initial distribution.