The Gresham House Strategic investment trust is winding itself up over the next year. They are currently trading at ca. £16.80p at a discount of about 10% to their NAV. They have instituted a series of tender offers allowing shareholders who wish to to sell of some of their shares to do so. The first tender is to take place on the 16/12 and will be offered at 2% below the NAV. This afternoon I heard the details of the 16/12 tender offer. Shareholders can sell 27% of the holding at a price of £15.51/share. This does not make sense to me. First of all because the tender is way below the current NAV. Secondly because I can’t understand why anyone would want to sell their shares at £15.51p when they can sell their shares at ca. £16.80 on the open market. Am I missing something? Help and advice please.
I am also looking at this and can't understand it. Is today's price of 1,399 a buying opportunity or am I totally missing the point? Will someone who is more savvy than me please respond. Many thanks in anticipation.
