Terra Capital PLC Update re Realisation Opportunity (4936L)
19 April 2018 - 9:30PM
UK Regulatory
TIDMTCA
RNS Number : 4936L
Terra Capital PLC
19 April 2018
Legal Entity Identifier: 2138006S6U2X7L4R8V74
19 April 2018
Update re Realisation Opportunity
Terra Capital PLC (the "Company")
In January 2015, as part of the recommended restructuring
proposals, shareholders in the Company ("Shareholders") approved
proposals whereby the board of the Company (the "Board") was
released from the obligation to propose a continuation vote in
2017. Instead, Shareholders approved a proposal whereby in June
2018 they would be offered an opportunity to realise all or part of
their investment in the Company at a price equal to the then
prevailing net asset value (less costs associated with the
opportunity) (the "Realisation Opportunity"). Additionally, it was
envisaged that if the number of Shareholders who availed themselves
of the Realisation Opportunity was such that the Company was no
longer a viable proposition the Realisation Opportunity would be
abandoned and the Company would be placed into voluntary
liquidation.
The Board has consulted with the Shareholders who between them
hold in excess of 60 per cent. of the issued share capital of the
Company. It has become clear to the Board that such Shareholders
would accept the Realisation Opportunity and as such the Company
would no longer be a viable proposition.
In the light of the above consultations the Board has
determined, subject to the formal approval of Shareholders to be
given in General Meeting, to dispense with the Realisation
Opportunity, and instead cease all new investments and seek to
realise, in an orderly fashion, the Company's portfolio of
investments and return the net proceeds generated to Shareholders
as soon as is practicable. The Board, having consulted with its
advisers, believe an orderly realisation of the portfolio of
investments is preferable to an immediate liquidation as it is
likely to achieve greater returns to Shareholders.
The proposal outlined above constitutes a change to the
investment policy of the Company and as such is subject to approval
by Shareholders. Accordingly, a circular (the "Circular")
containing details of the proposed change of investment policy will
be sent to Shareholders in the near future and will also contain a
notice of General Meeting (the "General Meeting") at which
Shareholders will be asked to approve the proposed change of
investment policy.
The Circular will also contain details of the manner in which
the Company proposes to return the net proceeds of the sale of
investments to Shareholders. Furthermore, the Company is consulting
with its advisers (and Shareholders) as to whether it is necessary
or desirable for the Company to maintain its AIM quotation pending
the realisation of its investments. If it is determined to cancel
the AIM quotation an appropriate resolution will also be proposed
at the General Meeting.
For more information, please visit www.terracapitalplc.com or
contact:
Galileo Fund Services Limited (Administrator)
Frazer Pickering
+44 1624 692600
Panmure Gordon (UK) Limited (Nominated adviser and corporate
broker)
Paul Fincham or Jonathan Becher
+44 20 7886 2500
Terra Capital plc.
Ian Dungate, Director
+44 1624 692600
NOTES:
Terra Capital plc is an AIM quoted investment company focussed
on generating high absolute returns while attempting to keep
volatility to a minimum. The Fund predominantly invests in
under-researched and under-valued companies listed on Frontier
Market stock exchanges. The Fund Manager targets for investment
companies that it believes are trading for less than their
intrinsic worth and so, aside from any potential growth prospects,
provide scope for capital appreciation as a result of a reversion
towards their underlying value. Investments are also made in
companies which are viewed as trading at fair value but which offer
opportunities for growth at a reasonable price. The Investment
Manager believes many such 'value' opportunities can be found in
Frontier Markets due to inherent market inefficiencies in such
markets. The Manager utilises in-house teams of its own analysts,
resident on the ground in areas of interest to investigate suitable
opportunities rather than rely on third party research.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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