REG-Aberforth Split Level Income Trust Plc: Statement re Scheme Calculations & Issue Update

Aberforth Split Level Income TrustAnnouncement

27/06/2024 11:45

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE,
PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR
INTO OR FROM THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND
POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA)
AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA, ANY
MEMBER STATE OF THE EEA, OR ANY JURISDICTION IN WHICH THE SAME WOULD BE
UNLAWFUL.

This announcement is not an offer to sell or a solicitation or an offer to
acquire, securities in the United States or in any other jurisdiction in which
the same would be unlawful.  Neither this announcement, nor any part of it,
shall form the basis of, or be relied upon in connection with, or act as an
inducement to enter into, any contract or commitment whatsoever.     
     

Aberforth Split Level Income Trust plc (“ASLIT”) and Aberforth Geared
Value & Income Trust plc (“AGVIT”)

Scheme Calculations & Issue Update

Scheme Calculations

Further to the election results in connection with the reconstruction and
winding up of ASLIT announced on 26 June 2024, the Board of ASLIT confirms the
Formula Asset Value (FAV) per Ordinary Share and the Terminal Asset Value
(TAV) per Zero Dividend Preference Share that will be used for the calculation
of entitlements under the recommended scheme of reconstruction and members'
voluntary liquidation of ASLIT under section 110 of the Insolvency Act 1986
(the "Scheme") and to determine the number of new AGVIT Ordinary Shares and
new AGVIT Zero Dividend Preference Shares in the capital of AGVIT to be issued
pursuant to the Scheme.

Under the terms of the Scheme, details of which were set out in the circular
to ASLIT Shareholders dated 28 May 2024:
* the FAV per Ordinary Share (being the entitlement of an Ordinary Share
pursuant to the Scheme, calculated on the basis of the net asset value of
ASLIT as at close of business on 21 June 2024 (the "Calculation Date")) was
84.84p; and
* the TAV per Zero Dividend Preference Share (being the entitlement of a Zero
Dividend Preference Share calculated on the basis of the net asset value of
ASLIT as at the Calculation Date) was 127.25p.
In accordance with the Scheme, Johnston Carmichael LLP have performed specific
procedures over the calculations of the FAV per Ordinary Share and the TAV per
Zero Dividend Preference Share and no issues were reported. The procedures
performed by Johnston Carmichael LLP did not constitute an audit of ASLIT.

For the purposes of the Scheme, the AGVIT Ordinary Shares will be issued at
100p and the AGVIT Zero Dividend Preference Shares will be issued at 100p.

Based on the FAV per Ordinary Share and the TAV per Zero Dividend Preference
Share set out above:
* an ASLIT Ordinary Shareholder who elected or was deemed to have elected for
the Ordinary Rollover Option in respect of any ASLIT Ordinary Shares shall
receive approximately 0.8484 AGVIT Ordinary Shares under the Scheme in respect
of each such ASLIT Ordinary Share held;
* an ASLIT Ordinary Shareholder who elected for the Ordinary Cash Option in
respect of any ASLIT Ordinary Shares shall receive 84.84p under the Scheme in
respect of each such ASLIT Ordinary Share held;
* an ASLIT Zero Dividend Preference Shareholder who elected for the ZDP
Rollover Zero Option in respect of any ASLIT Zero Dividend Preference Shares
shall receive approximately 1.2725 AGVIT Zero Dividend Preference Shares under
the Scheme in respect of each such ASLIT Zero Dividend Preference Share held;
* an ASLIT Zero Dividend Preference Shareholder who elected for the ZDP
Rollover Ordinary Option in respect of any ASLIT Zero Dividend Preference
Shares shall receive approximately 1.2725 AGVIT Ordinary Shares under the
Scheme in respect of each such ASLIT Zero Dividend Preference Share held;
* an ASLIT Zero Dividend Preference Shareholder who elected or was deemed to
have elected for the ZDP Cash Option in respect of any ASLIT Zero Dividend
Preference Shares shall receive 127.25p under the Scheme in respect of each
such ASLIT Zero Dividend Preference Share held.
Fractions of Shares which would otherwise arise will be rounded down to the
nearest whole number of Shares.

The Scheme remains conditional on, among other conditions, the passing of the
special resolution to place ASLIT into members' voluntary liquidation (the
"Resolution"), which will be proposed at the general meeting of ASLIT to be
held at 10.00 a.m. on 28 June 2024 (the "General Meeting"). The Scheme will
not become effective unless the Resolution is passed.

 

Issue Update

Further to ASLIT’s announcement dated 26 June 2024, the demand for Ordinary
Shares and ZDP Shares in AGVIT at 100 pence each was as follows:

                                               Demand for AGVIT Ordinary Shares  Demand for AGVIT ZDP Shares  
 ASLIT Ordinary Shareholders under the Scheme  £104.5m                           N/A                          
 ASLIT ZDP Shareholders under the Scheme       £0.2m                             £28.1m                       
 AGVIT Placing                                 £0.3m                             £9.2m                        
 AGVIT Offer for Subscription                  £2.3m                             £2.9m                        
 Total demand                                  £107.3m                           £40.2m                       

Therefore, conditional on the Resolution being passed at the General Meeting
and the Scheme becoming effective, 107,330,999 AGVIT Ordinary Shares and
40,249,000 AGVIT ZDP Shares will be issued under the Scheme, Placing and Offer
for Subscription in aggregate, to satisfy demand as shown in the table
above. 

Elections under the Scheme, Offer for Subscription and applications under the
Placing have been met in full other than one individual investor’s
subscriptions, which were subject to marginal scale back, in order to have a
matched ratio of AGVIT Ordinary Shares to AGVIT Zero Dividend Preference
Shares of 8:3. The AGVIT Board applied this scale back in accordance with the
policy described in the AGVIT Prospectus.

Accordingly, applications are being made for 107,331,000 AGVIT Ordinary Shares
(which includes the one subscriber share already in issue) and 40,249,000
AGVIT ZDP Shares to be admitted to listing on the premium and standard
segments respectively of the Official List of the  Financial Conduct
Authority and to trading on the main market of the London Stock Exchange at
8.00 a.m. on 1 July 2024 ("Admission"). The completion of the Scheme remains
subject to the passing of the Resolution at the General Meeting and Admission
will only be able to occur after the Scheme has become effective.

 Expected timetable                                                                                                                                                                                                               
                                                                                                                                                                                 2024                                             
 Second General Meeting                                                                                                                                                          10.00 a.m. on 28 June                            
 Effective Date for implementation of the Proposals and commencement of the liquidation of ASLIT                                                                                 28 June                                          
 Admission to listing of, and dealings commence in, (i) the AGVIT Shares issued pursuant to the Scheme and (ii) the AGVIT Shares issued pursuant to the AGVIT Placing and Offer  8.00 a.m. on 1 July                              
 AGVIT Shares issued in uncertificated form credited to CREST accounts of Shareholders under the Scheme                                                                          as soon as is reasonably practicable on 1 July   
 AGVIT Shares issued in uncertificated form credited to CREST accounts of AGVIT Shareholders under the AGVIT Placing and Offer                                                   as soon as is reasonably practicable on 1 July   
 CREST payments made in respect of cash entitlements of Shareholders under the Scheme                                                                                            12 July                                          
 Cheques despatched in respect of cash entitlements of Shareholders under the Scheme                                                                                             12 July                                          
 Definitive certificates in respect of AGVIT Shares issued in certificated form pursuant to the Scheme despatched to Shareholders entitled thereto                               12 July                                          
 Cancellation of listing of the Reclassified Shares                                                                                                                              as soon as practicable after the Effective Date  
 All references to time in this announcement are to UK time. Each of the times and dates in the above expected timetable (other than in relation to the General Meetings) may be extended or brought forward without further notice. If any of the above times and/or dates changes, the revised time(s) and/or date(s) will be notified to Shareholders by an announcement through a Regulatory Information Service provider.  
                                                                                                                                                                                                                                  
  Unless otherwise defined, all capitalised terms used but not defined in this announcement shall have the meaning as given to them in the Circular.                                                                              

 

For further information, please contact:

 Investment Managers Aberforth Partners LLP  +44 (0) 131 220 0733  
 Euan Macdonald Peter Shaw                                         

 

Financial Advisers to ASLIT and Sponsor & Placing Agent to AGVIT

 J.P. Morgan Cazenove (JPMC)                      +44 (0) 203 493 8000  
 William Simmonds Rupert Budge                                          
 Solicitors to ASLIT and AGVIT Dickson Minto LLP  +44 (0) 207 649 6823  
 Douglas Armstrong                                                      

 

ASLIT Legal Entity Identifier: 21380013QYWO82NZV529

 

AGVIT Legal Entity Identifier: 2138006A8FCYYWSJKE32

 

Important notices

This announcement does not constitute a prospectus relating to AGVIT, or form
part of, any offer or invitation to sell or issue, or any solicitation of any
offer to purchase or subscribe for, any shares in the Company or AGVIT in any
jurisdiction nor shall it, or any part of it, or the fact of its distribution,
form the basis of, or be relied on in connection with or act as any inducement
to enter into, any contract therefor. Investors should not purchase or
subscribe for any transferable securities referred to in this announcement
except on the basis of information contained in the AGVIT Prospectus (which is
available from Aberforth Partners LLP's website at www.aberforth.co.uk).

This announcement is not for publication or distribution, directly or
indirectly, in or into the United States of America. This announcement is not
an offer of securities for sale into the United States.  The securities
referred to herein have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States, except pursuant to an applicable exemption from registration. 
No public offering of securities is being made in the United States.

 



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