Aurora Investment Trust PLC Proposals for change (1379A)
September 24 2015 - 9:24AM
UK Regulatory
TIDMARR
RNS Number : 1379A
Aurora Investment Trust PLC
24 September 2015
Aurora Investment Trust plc (the "Company")
Proposals for a change of manager, revised investment policy and
tender offer
Following recent announcements by the Board regarding the future
of the Company, the Board is pleased to confirm that it has agreed
in principle to proposals that it believes will achieve the Board's
objective of offering an attractive continuing vehicle and a cash
exit for shareholders (the "Proposals").
The Company's existing manager is to be acquired by Phoenix
Asset Management Partners Limited ("Phoenix"). It is then intended
that the Company's investment policy and strategy will reflect the
successful investment style adopted by Phoenix since its
establishment in 1998. Phoenix aims to deliver excellent long term
returns investing in UK listed equities by identifying great
companies managed by honest and aligned managers and buying them
when they trade at attractive prices. Phoenix takes a long term
view and ignores interim market volatility. Phoenix intends to
build a portfolio consisting of 15 to 20 holdings with a
concentration in the top holdings.
Since its founding in 1998, the Phoenix UK Fund has risen by
438.6% (10.2% per annum) compared to 116.5% (4.6% per annum) for
the FTSE All Share including dividends. Phoenix currently manages
approximately GBP570m.
It is also intended that a new investment management agreement
will be entered into under which Phoenix will receive no base
management fee but will be entitled to a performance fee based on
annual outperformance of the FTSE All Share Total Return, payable
in new shares, and subject to a high watermark and annual cap.
The Board also intends to implement a tender offer for all
shareholders at a 2% discount to the net asset value per share
after associated expenses following the introduction of the new
investment strategy and the portfolio realignment.
Following the tender offer, the Board and Phoenix believe that
the Company will be an attractive investment opportunity for many
new investors and intend to grow the Company over time through the
issue of shares at a premium to net asset value. Clients of Phoenix
already own approximately 22% of the Company's issued shares and
will not tender their shares under the tender offer.
The Proposals remain subject to the negotiation of appropriate
agreements. The Proposals are subject to the approval in a general
meeting of the Company's shareholders. The Board intends to publish
a shareholder circular with further details on the Proposals in the
forthcoming weeks. It is expected that the change of manager and
new investment policy will be implemented by the end of November
2015 and the tender offer will be completed no later than the end
of January 2016.
Enquiries:
Lord Flight
Chairman
Tel: 020 7222 7559
John Luetchford / Anthony Lee
Cavendish Administration Limited
Company Secretary to Aurora Investment Trust plc
Tel: 020 7490 4355
James Barstow
Mars Asset Management Limited
Tel: 020 7490 4440
Gary Channon
Phoenix Asset Management Partners
Tel: 020 8600 0100
24 September 2015
END
This information is provided by RNS
The company news service from the London Stock Exchange
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