7th Apr 2016 08:45
LONDON (Alliance News) - Dunedin Enterprise Investment Trust PLC Thursday recommended shareholders vote in favour of its proposals to wind down the company in an upcoming general meeting, convened for May 11.
In February the trust announced plans to conduct a managed wind down, having consulted with major shareholders. Dunedin said it had been influenced by several key factors, including the decreasing size of the company, its flat investment performance, and the substantial discount at which its shares trade relative to their net asset value.
The company's market capitalisation is now only around GBP66 million, it said, which exacerbates the lack of liquidity in its shares. Also in February the company realised proceeds from selling its largest investment, CitySprint, of GBP26.1 million.
Dunedin said that if the proposals are approved by shareholders, it will remain listed as an investment trust, with the sole purpose of returning cash to investors over time as its investments are realised.
Shares in Dunedin Enterprise Investment were up 3.5% at 326.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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