24th Sep 2021 07:47
Acorn Income Fund Ltd - investment firm - Declares last interim dividend of 7.5p for 2021, representing substantially all of the estimated revenue reserves as of September 22. Says the dividend payment is connected to its proposed scheme of reconstruction. Agrees terms with Unicorn Asset Management over proposed rollover of its assets into Unicorn UK Income Fund and an option for a cash exit. Proposes a scheme of reconstruction to voluntarily wind up of the company, which it expects to be placed into liquidation at the extraordinary general meeting.
"Given a combination of factors, including the company's existing dual portfolio structure, a likely future cut in dividends, the historic discount to net asset value at which the ordinary shares have traded in the market, and the relatively small size of the company, the board does not believe that the company can viably continue in its existing form," it says.
Publishes shareholders circular setting out proposals to be considered for approval at an annual general meeting and extraordinary general meeting on October 12. Says shareholders may elect to exchange their existing shares in Acorn for Unicorn UK Income Fund shares with the same value as their holdings. Alternatively, shareholders can exchange their company shares for cash. If shareholders do not pick an option will be deemed to have elected to share options, which is the default option under the scheme. Holders of ZPD shares will receive their full capital entitlement prior to the current repayment date of February 28, 2022.
Current stock price: 418.00 pence on Thursday
Year-to-date change: up 30%
By Scarlett Butler; [email protected]
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