Further to its announcement on 20 December 2024 that it was proposing a managed wind down and return of cash to shareholders, Menhaden resource Efficiency (MHN) has publish a circular in relation to these proposals and is convening a general meeting on 25 March 2025, seeking approval for the trust to be placed into members’ voluntary liquidation.
It is intended that MHN’s listed investments will be sold shortly following the general meeting and the manager is engaged in discussions with the general partners of the unquoted investments that MHN holds, with a view to disposing of such investments as soon as practicable. Assuming shareholders approve the proposals, an initial distribution is expected on 26 May 2025.
[QD comment: As we highlighted when Menhaden made its announcement that it wanted to call it a day, the trust had a difficult beginning and seems to have moved from one problem to the next. The initial concept looked good and, in that regard, it is a shame to see it go, but, with its myriad issues it was no longer capturing investors’ imagination and something had to be done. Liquidating the listed portfolio should be relatively straightforward. Inevitably, the unlisted portfolio will take longer. The manager and board will wish to maximise returns for shareholders but will also need to balance this against the time that it will take to achieve these realisations. The good news for Menhaden shareholders is that deal activity has been on the rise in private markets, following a lull during the last couple of years, which should aid the exit process and hopefully allow for better exit pricing.]
Comments from Howard Pearce, chair of Menhaden Resource Efficiency
“Shareholders have expressed clear feedback to move forward promptly with the portfolio realisation; we appreciate their constructive input. The Circular published today reflects their wish for a timely and cost-effective full cash exit. If these proposals are approved on 25th March, we expect that the listed portfolio will be realised shortly after the appointment of liquidators, with an initial distribution expected during the week commencing 26 May 2025.
“Led by the portfolio manager, Menhaden Capital Management, and the company’s brokers, Deutsche Numis, good progress has been made in discussions with potential buyers of the unquoted investments, including with the investments’ General Partners. Given their expertise and knowledge of the portfolio investments, the portfolio manager will if needed be called on by the liquidators to help maximise value for shareholders. Net proceeds from the unquoted sales will be returned to shareholders as soon as possible.”
Comments from Ben Goldsmith, CEO of the portfolio manager
“We fully support the board putting forward this realisation plan for shareholders’ approval. It aims to provide our investors with a full cash exit, optimising the speed and costs of the process. We will assist the liquidator as required to help expedite the sale of the quoted and unquoted investments. I, and the rest of the MCM team, would like to thank shareholders in advance, for their ongoing support in this process.”
The company has subsequently engaged with a number of large shareholders and received letters of intent to vote, or procure the votes, in favour of the resolution to be proposed at the general meeting from a majority of the company’s top shareholders, including Cavamont Holdings Limited, Generali Deutschland Versicherung and the principals at the portfolio manager.
