AXA Property Trust Receipt of Proposal
08 December 2018 - 4:22AM
UK Regulatory
TIDMAPT
AXA Property Trust Limited
(a closed-ended investment company incorporated with limited liability under
the laws of Guernsey with registered number 43007)
LEI Number: 213800AF85VEZMDMF931
(The "Company")
Receipt of Outline Proposals for the future of the Company
7 December 2018
As previously announced, the shareholder who voted against the proposals to
place the Company into voluntary liquidation at the adjourned EGM held in
September 2018, had indicated he wished new proposals for the future strategy
of the Company to be considered by the Board and, in due course, by
shareholders. The Directors had requested that he confirmed and elaborated on
the proposals with further detail, including an expanded version of the
proposed new investment policy.
In response to the request, which was addressed to Worsley Associates LLP
("WALLP"), key elements of outline proposals have now been submitted to the
Company by Blake Nixon that:
* the Company revert to a continuing operation;
* the Company's investment policy be modified so as to provide shareholders
with an attractive level of absolute long-term return, principally through
the capital appreciation and exit of undervalued securities, through active
investment in undervalued smaller capitalisation British equities;
* Blake Nixon to be appointed forthwith as a director of the Company;
* the Curno property be taken off the market for the time being;
* the policy of returning capital to shareholders be discontinued;
* WALLP to be appointed as Investment Advisor to the Company, to be
responsible for the implementation of investment decisions made by the
Board and to assume executive management of the corporate structure and
affairs, as replacement for AXA Investment Managers UK Limited ("AXAIM"),
to the extent this role is not to be fulfilled by Blake Nixon personally;
* the Company's Board structure be reviewed in light of this new focus (and
in particular the potential to reduce the number of directors on the board
to three);
* an expense reduction exercise be undertaken to reduce the administration
and general costs of the Company as an ongoing listed vehicle; and
* the best option for the asset management of the Curno property to be
identified as replacement for AXAIM;
(collectively, the "Outline Proposals").
Blake Nixon also confirmed that under the Outline Proposals:
* there will not be any capital returns from the proceeds of the eventual
disposal of the Curno property;
* in due course, it will be desirable for the Company to raise further
capital, at which stage views of investors will be canvassed on continued
listing on the Premium Segment or other segment of the London Stock
Exchange's Main Market, dividend policy and the possibility of discount
control, a continuation vote or other liquidity provisions;
* fees will be payable to Blake Nixon and WALLP in respect of investment
management of the Company; and
* no contribution will be made by Blake Nixon directly to any transaction
costs of the Company arising from the Outline Proposals, other than to the
extent that he is already indirectly as a major shareholder bearing his
percentage share of the Company's costs.
The Board is considering the Outline Proposals and will seek to consult with
the Company's largest shareholders. A further announcement will be made in due
course.
In the meantime, the Board will continue to follow the current managed
wind-down strategy until such time as shareholders approve any change. In order
to support such a change, the Board will require a proposal which is
sufficiently detailed to be shared with all shareholders for consideration and
which the Board believes could be in the best interests of the Company and its
members as a whole.
retail.axa-im.co.uk/axa-property-trust
All Enquiries:
Investment Manager
AXA Investment Managers UK Limited
Broker Services
7 Newgate Street
London EC1A 7NX
United Kingdom
Broker
Stifel Nicolaus Europe Limited
150 Cheapside
London EC2V 6ET
United Kingdom
Tel: +44 (0)20 7710 7600
Company Secretary
Northern Trust International Fund
Administration Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 3QL
Channel Islands
END
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December 07, 2018 12:22 ET (17:22 GMT)
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