THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT
FOR PUBLICATION, RELEASE OR DISTRIBUTION (IN WHOLE OR IN PART)
DIRECTLY OR INDIRECTLY IN OR INTO OR FROM ANY JURISDICTION WHERE TO
DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT
JURISDICTION. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF
SECURITIES.
27 October, 2020
UK MORTGAGES LIMITED
(a closed-ended investment company incorporated in Guernsey with
registration number 60440)
The Board of UK Mortgages Limited (the "Company" or “UKML”) can
announce that it has completed the review of strategy which it
commenced following the withdrawal of proposals by M&G
Investment Management Ltd (“MAGIM”) on August 17 2020.
The review has identified two potential options that would, in
the view of the Board and its advisors, provide a clear path to the
Company’s objectives announced in August of enhanced liquidity as
well as a narrowing and removal of the discount at which UKML
shares trade versus UKML’s Net Asset Value.
The options are to either:
- continue operating as a publicly traded investment company
under a revised mandate offering increased focus on enhancing
liquidity and returns;
or
- to proceed with an orderly wind-down of the Company and
returns of capital to its shareholders (“the Shareholders”).
Following the review, in which the Board has been supported by
Twenty Four Asset Management LLP (“the Manager”), the Company’s
portfolio manager and Numis Securities Limited as corporate broker,
the Board has concluded that there is a reasonable case to be made
for both options, taking into account both the improved and
improving outlook for the UK mortgage market and housing market,
the success of the recent Oat Hill securitisation and the potential
for further successful securitisation issues. At the same time,
prospects for 2021 remain uncertain with a resurgence of COVID 19,
rising unemployment and the planned ending of the stamp duty
holiday.
Mindful of earlier feedback from the Shareholders, the Board
intends to embark on a further round of consultation with
Shareholders with a view to ascertaining their appetite for each of
those two options. Following that consultation, it is intended that
the Board should make a firm recommendation and convene an
Extraordinary General Meeting of Shareholders before the end of the
year to vote on the proposals.
The Chairman, Chris Waldron comments:
“Having taken stock of the feedback we received from
Shareholders in August, the Board has been working intensively with
the Manager and with our advisory team to evaluate the various
options for improving liquidity and narrowing the discount to NAV.
Having narrowed the choices down to two viable options, we will now
go back to Shareholders in order to present those options in detail
and hear their views on how they wish to proceed.”
Enquiries:
UK Mortgages Limited
Christopher Waldron (Chairman)
020 7260
1000
Numis Securities Limited, Financial Adviser and Corporate
Broker
Hugh
Jonathan
020 7260 1000
Nathan Brown
Vicki Paine
Garfield Advisory, Public Relations Adviser
Andrew
Garfield
079 7498 2337
Jason
Nisse
077 6968 8618
Further information
This announcement is not intended to and does not constitute an
offer to buy or the solicitation of an offer to subscribe for or
sell or an invitation to purchase or subscribe for any securities
or the solicitation of any vote in any jurisdiction. The release,
publication or distribution of this announcement in whole or in
part, directly or indirectly, in, into or from certain
jurisdictions may be restricted by law and therefore persons in
such jurisdictions should inform themselves about and observe such
restrictions.
Numis Securities Limited (“Numis”), which is authorised and
regulated in the United Kingdom by
the Financial Conduct Authority, is acting exclusively for UK
Mortgages Limited and no one else in connection with the matters
set out in this announcement and will not regard any other person
as its client in relation to the matters in this announcement and
will not be responsible to anyone other than UK Mortgages Limited
for providing the protections afforded to clients of Numis, nor for
providing advice in relation to any matter referred to herein.
Forward looking statements
This announcement, oral statements and other information
published by UK Mortgages Limited may contain statements which are,
or may be deemed to be, “forward-looking statements”.
Forward-looking statements are prospective in nature and are not
based on historical facts, but rather on current expectations and
projections of the management of UK Mortgages Limited about future
events, and are therefore subject to risks and uncertainties which
could cause actual results to differ materially from the future
results expressed or implied by the forward-looking statements.
Often, but not always, forward-looking statements can be identified
by the use of forward-looking words such as “plans”, “expects” or
“does not expect”, “is expected”, “is subject to”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or
“does not anticipate”, or “believes”, or variations of such words
and phrases or statements that certain actions, events or results
“may”, “could”, “should”, “would”, “might” or “will” be taken,
occur or be achieved. Although UK Mortgages Limited believes that
the expectations reflected in such forward-looking statements are
reasonable, UK Mortgages Limited can give no assurance that such
expectations will prove to be correct. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to events and depend on circumstances that will occur
in the future. There are a number of factors that could cause
actual results and developments to differ materially from those
expressed or implied by such forward-looking statements. Such
forward-looking statements should therefore be construed in the
light of such factors. Neither UK Mortgages Limited, nor any of its
associates or directors, officers or advisers, provides any
representation, assurance or guarantee that the occurrence of the
events expressed or implied in any forward-looking statements in
this announcement will actually occur. You are cautioned not to
place undue reliance on these forward-looking statements. Other
than in accordance with its legal or regulatory obligations
(including under the Disclosure Guidance and Transparency Rules of
the FCA), UK Mortgages Limited is under no obligation, and
expressly disclaims any intention or obligation, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
MAR
The information contained within this announcement is deemed by
UKML to constitute inside information as stipulated under the
Market Abuse Regulation. Upon the publication of this
announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.