2nd May 2025 14:29
(Alliance News) - Middlefield Canadian Income PCC on Friday announced a proposed rollover into a new exchange-traded fund, in the form of a UCITS or undertakings for collective investment in transferable securities.
The Canadian and US equities-focused investor said that shareholders "would have the option to receive shares in a newly established, actively managed, listed and London Stock Exchange traded fund in the form of an authorised UCITS".
Middlefield Canadian expects the transaction to involve the voluntary winding up of both the company and the fund. It said advisory work on the rollover's structure is ongoing.
It said the ETF would be managed by its investment manager, Middlefield Ltd, and would offer continued exposure to its investment objective and policy. Shares in the ETF would be admitted to trading on the London Stock Exchange's main market for listed securities, it added.
"The intention in proposing the ETF as an alternative investment option for shareholders would be to create a cost-effective vehicle which is positioned to grow and which should benefit from a tight bid-offer spread, a total expense ratio ('TER') lower than the company's current TER and a share price that trades close to or at the NAV per share of the ETF," Middlefield Canadian explained.
However, the company added that shareholders would alternatively be able to participate in an uncapped cash exit at close to the net asset value per share, or to receive a combination of cash and ETF shares.
This follows Middlefield Canadian's receipt of a requisition notice from Saba Capital Management LP proposing "a scheme or process by which shareholders would have the option of becoming shareholders of a UK-listed open-ended investment vehicle with a substantially similar strategy".
"Following constructive discussions, Saba agreed to withdraw the requisition notice for a period of 60 days to enable the company and its advisers to formulate proposals that would best serve the interests of all shareholders," Middlefield said, adding: "Saba has...indicated that it would vote in favour of the transaction at any general meeting of shareholders to be convened in due course to approve the transaction."
Chair Michael Phair commented: "The board continues to have strong conviction in the company's investment proposition and its ability to deliver a high level of income and long-term capital growth.
"However, the board has listened to feedback from shareholders and recognises that the constrained liquidity and persistent discount to NAV remain impediments to new and further investment."
Shares in Middlefield Canadian were 3.0% higher at 119.70 pence each in London on Friday afternoon.
By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Middlefield Prf