REG - Down MicroCap InvTst - Statement re Payment of Dividend

Downing Strategic Micro-Cap Investment TrustAnnouncement

18/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240718:nRSR8434Wa&default-theme=true

RNS Number : 8434W  Downing Strategic Micro-Cap IT PLC  18 July 2024

Downing Strategic Micro-Cap Investment Trust plc (the "Company")

LEI Number: 213800QMYPUW4POFFX69

Payment of Third Special Interim Dividend of 17.5p

Following the Company's announcement of a Third Special Interim Dividend on 18
June 2024, the Company can confirm that today a payment of 17.5 pence per
share, equivalent to, in aggregate, £8.0 million was made to shareholders on
the Company's register of members at close of business on 28 June 2024.

As a result of the payment of the Third Special Interim Dividend, the Company
has now returned approximately 90.2 per cent. of the Company's NAV as at 28
February 2024 (being the date on which shareholders approved the managed
wind-down of the Company) through special dividends. The Board and Investment
Manager expect the remainder of the Company's portfolio to be realisable at
least at carrying value.

As at 16 July 2024, the Company had assets of less than £5.2 million. Those
remaining investments are largely in well performing companies.

As previously announced, the Board of the Company has received a request to
requisition a general meeting of the Company (the "Requisition") from Vidacos
Nominees Limited, acting as nominee of Milkwood Capital Limited ("Milkwood").
The Board believes that the resolutions to be proposed at the requisitioned
general meeting of the Company (the "Requisitioned Resolutions") seek to
facilitate Milkwood taking control of the board of the Company.

The Board considers that Milkwood's decision to lodge the Requisition is
wholly self-interested and disruptive when the Board and the Investment
Manager are focused on returning cash to shareholders pursuant to the
shareholder approved managed wind-down of the Company.

The Board unanimously recommends that you VOTE AGAINST each of the
Requisitioned Resolutions.

Shareholders are reminded, if voting by proxy, that the latest time and date
for lodging proxy forms or submitting proxy instructions online in connection
with the requisitioned general meeting is 10.00 a.m. on 1 August 2024. The
record date and time for the purposes of being entitled to vote at the
requisitioned general meeting is 6.00 p.m.  on 1 August 2024, and the meeting
will be held on 5 August 2024 at 10.00 a.m.

Hugh Aldous, Chairman of the Company, commented:

"Since shareholders voted overwhelmingly to wind down the Company and the
Board embarked on actions to return the cash as expeditiously and efficiently
as we can, approximately 90.2% of the Company's NAV as at 28 February 2024 has
been returned to investors with further potential distributions in prospect.
We thank the manager for its hard work in delivering this excellent result.
The proposal by Milkwood jeopardises further potential distributions and risks
investors being trapped in an illiquid vehicle controlled by a board under the
control of a manager who may not share their interests. Shareholders only have
a few days to lodge proxy votes against these proposals and allow us to
complete the task that you set us in February.

Meanwhile we continue to assert that if Milkwood wish to take over the company
and its management, they should put in an acceptable bid for it, rather than
seek to gain control of the Company on the cheap"

 

For further information, please contact:

 Chairman
 Hugh Aldous  Tel: 020 7416 7780

 

 Dickson Minto Advisers LLP
 Douglas Armstrong           Tel: 020 7649 6823

 

 Media Contacts - Garfield Advisory
 Andrew Garfield                     Tel: 07974 982337
 Jason Nisse                         Tel: 07769 688618

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  STRDGGDRCBBDGSR