5th Sep 2019 15:20
(Alliance News) - Gabelli Value Plus Trust PLC said Thursday it will not go ahead with the tender offer announced in July following a shareholder requisition to hold a continuation vote.
The investment trust was proposing to undertake a tender offer for up to 15% of the trust's issued share capital. Gabelli Value was set to post a circular to shareholders "in due course" setting out the details of the proposed tender offer.
The trust also announced it was looking to amend its continuation vote provision, which was agreed on at the company's IPO in early 2015.
When the trust listed, it agreed to hold a continuation vote every five years if the trust traded, on average, at a discount in excess of 10% of net asset value per share in that fifth year. The next eligible year is the current one, ending March 2020.
Instead, Gabelli Value is hoping to change it and propose a continuation vote every two years, starting from 2020. The trust said the new proposal will not be subject to any pre-conditions, such as the NAV discount.
On Thursday, however, Gabelli Value said a "leading shareholder" will request a general meeting in 2019 and propose a continuation vote.
"In light of this intention, the board of directors of the company has decided that the company will not proceed with the proposed tender offer at this stage," Gabelli Value said.
Shares Gabelli Value Plus Trust were 1.8% higher in London on Thursday at 125.24 pence each.
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