Update on Reconstruction Proposals (4192D)
22 Mars 2011 - 4:28PM
UK Regulatory
TIDMENG
RNS Number : 4192D
Electric & General Inv Tst PLC
22 March 2011
Electric & General Investment Trust plc
Update on Reconstruction Proposals
The board (the "Board") of Electric & General Investment
Trust plc (the "Company") wishes to update shareholders on progress
of its intended reconstruction proposals announced in February
2011.
The Board is conscious of the need to maximise shareholder value
and is now in a position to confirm that if the reconstruction was
effected today (i.e. with reference to the net asset value of the
Company as at 21 March 2011), the value attributable to a
shareholder electing for either cash or rolling into the new OEIC
(the "New Fund") would be expected to exceed 99.3% of net asset
value.
Since Taube Hodson Stonex's appointment in September 2004 (but
disregarding the period until 1 December 2004 when a tender offer
provided a one-off NAV uplift and during which it was necessary for
the portfolio to carry high levels of liquidity), the Company has
delivered an NAV total return of 77.4%, substantially in excess of
the benchmark, the MSCI World Index, which has returned 54.3%. The
Board believes retention of the Investment Manager for the rollover
option is in shareholders' best interests. A reduced management fee
(0.3% of net assets) will apply to shares rolled over and to
additional future subscriptions from these shareholders.
The performance is for the period from 1 December 2004 to close
of business on 21 March 2011.
The Board hopes to implement these proposals as soon as is
possible and will make a further announcement with the timing
detail as soon as practicable. In the meantime, the Board confirms
that the Company's reserve position precludes an accelerated cash
exit structure or extensive share repurchase programme.
The Board will undertake a further round of shareholder
consultation to detail the merits of its proposals.
Enquiries:
William Simmonds 020 7588 2828
J.P. Morgan Cazenove
22 March 2011
End
This information is provided by RNS
The company news service from the London Stock Exchange
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