10th Nov 2014 11:00
LONDON (Alliance News) - Baker Steel Resources Trust Ltd shares were trading higher on Monday after the fund said it is considering acquiring assets in exchange for equity, which would significant hike the net assets and market capitalisation of the company.
Shares in the trust were up 14% to 31.50 pence on Monday after it said it is considering undisclosed assets from a number of pooled investment vehicles. This includes vehicles in which clients of Baker Steel Capital Managers LLP and Salamanca Group Investors Ltd have invested.
All of the assets fall within the existing investment policy of the company, Baker Steel said. All are expected to completed over a short period of time, it said, with around GBP25 million acquired initially and up to GBP90 million more to be acquired upon completion. Around 40% of the assets are unlisted, with the rest listed, it said.
The company intends to pay for the new acquisitions via an issue of equity. It is considering issuing up to GBP100 million in equity for cash, which would be issued at a 15% discount to its net asset value initially.
By Sam Unsted; [email protected]; @SamUAtAlliance
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