LONDON: Aberforth Split Level Income Trust plc (ASLIT) Board has outlined a scheme for the company’s voluntary winding-up. The Board has agreed in principle with Aberforth Geared Value & Income Trust plc (AGVIT) on a reconstruction scheme, set to be effective on June 28, 2024, pending shareholder approval.

AGVIT, launching on July 1, 2024, will offer a rollover option for ASLIT investors, maintaining exposure to a diversified portfolio of small UK quoted companies.

The proposed scheme allows ordinary shareholders to exchange their ASLIT investment for AGVIT ordinary shares or cash, while ZDP shareholders can opt for AGVIT ZDP shares, ordinary shares, or cash. AGVIT’s capital structure will mirror ASLIT’s current gearing level, ranging from 30 to 40 percent of total ordinary shareholders’ funds. AGVIT aims to provide high total returns and an attractive income level for ordinary shareholders, with a predetermined final capital entitlement for ZDP shareholders by June 30, 2031.

The Board also announced an upward revision of the second interim dividend from 2.75p to 3.25p per Ordinary Share, reflecting a strong dividend performance. This dividend is expected to be distributed by the end of June 2024, before the company’s winding-up. No further dividends will follow, with shareholders receiving value for any undistributed revenue reserves as part of the winding-up scheme.

Final proposals are being prepared for publication by the end of May 2024, with shareholder circulars detailing the scheme and general meetings for approval to follow. The meetings are slated for June 2024, marking a critical step in the company’s transition.

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