News
- Home
- Aquila Energy Efficiency Trust provides detail on tender offer proposal
Aquila Energy Efficiency Trust (AEET) has published details of a tender offer under which up to 18.6% of its issued share capital may be repurchased at 94.28p per share, up to a maximum consideration of £17.5m. AEET is publishing a circular which we would suggest that shareholders read. AEET is seeking shareholders’ approval for the tender offer to proceed at a general meeting to be held at 11.30 a.m. on 13 May 2024.
Following AEET’s IPO in 2021, the funds raised were deployed into various investments and AEET entered into contractual commitments to make further investments. Since the date of the continuation vote in February 2023, which did not pass, no new investment commitments have been made and Aquila Capital Investmentgesellschaft GmbH (AEET’s investment adviser) has, where possible, renegotiated some of the existing commitments, so as to reduce the amount of further investment required by AEET.
As at 31 December 2023, AEET and its immediate investment holding entities had contractual legal obligations in relation to existing investments (unfunded commitments) equivalent to approximately £5.58m (translating Euro obligations at €1.1535:£1 and including an allowance for external transaction costs). Between 31 December 2023 and 31 March 2024, £0.51m of those unfunded commitments have been added to existing investments. Following its AGM in June 2023, AEET’s portfolio has been managed in accordance with the “Managed Run-Off Resolution”.
AEET’s cash and cash equivalents as at 31 March 2024 were £28.72m (with cash in Euro accounts converted at €1.1697:£1 and exclusive of the £2.5m of cash held as collateral for the Company’s existing currency hedges held in line with its strategy). Given the uncertain nature of the timing of returns of certain of the Company’s investments, combined with upcoming cash requirements for Unfunded Commitments (referred to above), AEET’s board says that it is important to maintain a cash buffer to ensure AEET can continue to meet its liabilities and commitments. AEET’s board considers the tender offer to be beneficial to the shareholders as a whole, including, among other reasons, in that:
Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.
Due to data protection policies, USA residents can not access our data.
Your content has been curated