Trian UK investment fund to close after campaign by activist investors (updated)
02/09/2022 10:58
(Adds detail, comment, shares)
LONDON, Sept 2 (Reuters) - UK investment trust Trian
Investors 1 TI1.L will wind up the company, it said on Friday,
after a campaign for change at the firm by a group of activist
investors.
Shareholders led by Global Value Fund, Invesco IVZ.N ,
Janus Henderson JHG.N and Pelham voted to remove TI1's chair
last month. urn:newsml:reuters.com:*:nL1N2ZK0GX
The activists had expressed concerns over changes to TI1's
strategy on the number and type of its investments, proposals to
become a special purpose acquisition company (SPAC), and about
its share price performance.
The trusts's investment management strategy is carried out
by Nelson Peltz's Trian Fund Management, itself an activist
investor, taking stakes in companies and seeking changes in
order to boost their share price.
TI1, which has around 440 million pounds ($508.42 million)
in assets under management, invested in Unilever ULVR.L and
Ferguson FERG.L .
It will compulsorily redeem at least 95% of each
shareholder's stake in the trust by June 30 next year, it said
in a statement, leaving investors with the underlying shares.
Once the share redemption has been completed, the board will
begin a wind-up process, with any residual net assets to be
returned to shareholders in cash, it added.
"The share redemption scheme recognises the significant
potential future upside from the company's core holdings, while
meeting the desire of certain investors for greater liquidity
and of the company's board to see its discount to fair value
unwind," new chair Mark Thompson said in a statement.
Shareholders, including Trian, representing 86.3% of its
shares supported the proposals, TI1 said.
The activist investors did not immediately respond to
request for comment.
TI1's shares jumped 17% to a record high.
The UK investment trust managed by activist investor Third
Point has also faced criticism from activist investors.
urn:newsml:reuters.com:*:nL8N2T82OM
($1 = 0.8654 pounds)
(Reporting by Carolyn Cohn; Editing by David Goodman and Mike
Harrison)
((carolyn.cohn@thomsonreuters.com; 44 207 513 4391;))