PABI Prem. Abs.

    FOR IMMEDIATE RELEASE

Premier Absolute Growth & Income Trust plc ("the Company")

9 October 2007

Proposals for the winding-up of the Company

The Board is today announcing recommended proposals for the winding-up of the
Company and of its subsidiary PAGIT Securities Limited. In view of the weighted
voting rights which are attached to the Shares for the purposes of the winding
up resolution, the Company will be wound up on 8 November 2007.

Background

Under the Articles of Association, the Board is required to convene a GM if all
of the Preferred Income Shares have not been redeemed at the option of the
Directors on or before 8 November 2007. As there is no prospect of all of the
Preferred Income Shares being redeemed on or before 8 November 2007, the
Proposals have been made in order to comply with the Articles of Association.

Entitlements on a winding-up

On a winding-up, after the payment of all debts and satisfying all other
liabilities of the Company, the holders of the Preferred Income Shares are
entitled to receive an amount equal to 80p per Preferred Income Share increased
daily at such compound rate as would give a final entitlement of 100p on 8
November 2007, together with a sum equal to all arrears and accruals (if any)
of the cumulative preferred dividend of the Preferred Income Shares.

The holders of Ordinary Income Shares are entitled to receive surplus assets of
the Company available for distribution after payment of all debts and
satisfying all other liabilities of the Company and satisfying the entitlements
of the holders of Preferred Income Shares.

The ZDP Shares, which are issued by the Company's subsidiary, PAGIT Securities,
rank ahead of the Preferred Income Shares and the Ordinary Income Shares on a
winding-up of PAGIT Securities. It is anticipated that PAGIT Securities will
also be wound-up on 8 November 2007 at which point each ZDP Share will be
entitled to its final capital entitlement of 182.84708p (representing an
aggregate entitlement of �14.68 million). Under arrangements between the
Company and PAGIT Securities contained in the Loan Note and the Subscription
Agreement, on a winding-up, the Company is obliged to pay such amount to PAGIT
Securities as is required to satisfy in full the capital entitlement of the
holders of ZDP Shares, or, to the extent the Company does not have sufficient
assets to satisfy such entitlement in full, the Company shall pay to PAGIT
Securities all of its remaining assets after payment of all other creditors.

As at the date of this document, it is uncertain whether the Preferred Income
Shareholders will receive any distribution on the liquidation of the Company,
at least initially. There is no realistic prospect of the Ordinary Income
Shareholders receiving any distribution pursuant to the winding-up of the
Company.

For illustrative purposes, the net assets of the Company as at 30 September
2007 published on 3 October 2007 (being the latest practicable date prior to
the printing of this document) were approximately �15.224 million. The amount
of these net assets takes into account the anticipated costs of liquidating
both the Company and PAGIT Securities (estimated at �200,000) as well as the
retentions anticipated to be required by the Liquidators (to meet contingent
and unknown liabilities) of �150,000 and �25,000 respectively for each of the
companies. The net asset figure does not recognise any future recovery of VAT
(see below).

If the net assets remained at this level upon the liquidation of the Company
and PAGIT Securities then Shareholders would receive the following initial
distributions:

Preferred Income Shares     3.01p

Ordinary Income Shares         0p

Potential recovery of value added tax

PAGIT has made a claim against the Manager and the former manager of PAGIT in
respect of VAT borne by PAGIT on management fees. The claim relates to the
principle recently established by the European Court of Justice that investment
trusts should under pan-European VAT law be regarded as "special investment
funds" for the purposes of exemption from VAT on supplies to them of management
services. As the application of this principle in a UK context is still being
worked out by the UK courts it is unclear what (if any) amounts PAGIT can
expect to receive in respect of its claim or when any such amounts might be
paid.

In the event PAGIT recovers any VAT from the Manager or the former manager and
to the extent that there has been a shortfall in satisfying the final capital
entitlement of the ZDP Shares, the monies represented by the VAT recovery shall
be paid to PAGIT Securities for its liquidators to distribute to the ZDP
Shareholders. If there is any remaining amount available then such amount
should be available for distribution to the holders of Preferred Income Shares.

Dealings

Dealings in the Shares on the London Stock Exchange will be suspended at the
opening of business on 8 November 2007 and on the same date the listing on the
Official List of the UK Listing Authority will be suspended.

It is expected that the Shareholders' register will be closed at the close of
business on 7 November 2007 and, to be valid, all transfers must be lodged with
the Registrars before that time.

Expected timetable

2007                                                                         
                                                                             
6 November                    Latest time and date for receipt of Forms of   
                              Proxy for the GM (10.20 a.m.)                  
                                                                             
7 November        Close of    Share registers close                          
                  business                                                   
                                                                             
8 November        8.00 p.m.   Suspension of Shares from trading on the London
                              Stock Exchange and suspension of listing on the
                              Official List                                  
                                                                             
8 November        10.20 a.m.  GM of the Company and appointment of           
                              liquidators                                    
                                                                             
9 November        08.00 a.m.  Listing of Shares cancelled                    
                                                                             
12 November                   Initial liquidation distribution (if any)      
                                                                             

General

Full details of the Proposals and the notice of extraordinary general meeting
of the Company are set out in the Circular which is being despatched to the
Company's Shareholders today. Terms used in this announcement shall have the
same meaning as in the Circular.

Copies of the Circular have been forwarded for publication through the UK
Listing Authority and are available at:

                        UKLA Document Viewing Facility                         

                       The Financial Services Authority                        

                            25 The North Colonnade                             

                                 Canary Wharf                                  

                                London, E14 5HS                                

                         Telephone No (0207) 066 1000                          

Enquiries

Premier Fund Managers
Nigel Sidebottom
+44 (0)1483 400465


Landsbanki Securities (UK) Limited
Paul Fincham/Jonathan Becher
+44 (0)20 7426 9000

Landsbanki Securities (UK) Limited, which is authorised and regulated in the
United Kingdom by the Financial Services Authority, is acting solely for the
Company and for no one else in connection with the Proposals and will not be
responsible to anyone other than the Company for providing the protections
afforded to clients of Landsbanki Securities (UK) Limited or for affording
advice in relation to the Issue or any matter referred to in this document.



END

Prem. Abs. (LSE:PABI)
Historical Stock Chart
From May 2024 to Jun 2024

Prem. Abs. (LSE:PABI)
Historical Stock Chart
From Jun 2023 to Jun 2024