LONDON: Aberforth Geared Value & Income Trust plc (AGVIT) has recently published a prospectus regarding the issuance of ordinary shares and zero dividend preference shares.
AGVIT is involved in a scheme of reconstruction and members’ voluntary winding up of Aberforth Split Level Income Trust plc (ASLIT) under the Insolvency Act. As part of this scheme, AGVIT will acquire ASLIT’s rollover portfolio, which includes assets primarily from small UK quoted companies.
The purpose is to provide existing ASLIT shareholders with an opportunity to transition their investment into AGVIT.
Aberforth Geared Value & Income Trust is launching a Placing and Offer for Subscription to allow investors who are not current ASLIT shareholders to become AGVIT shareholders.
This move aims to broaden AGVIT’s investor base and enhance liquidity. The Placing and Offer for Subscription will issue both ordinary shares and zero dividend preference shares.
Aberforth Partners, with a 33-year track record, manages small UK quoted companies. Their value investment philosophy and engagement with portfolio companies have contributed to strong performance.
Aberforth Geared Value & Income Trust offers geared exposure to small UK quoted companies. Its limited life of seven years ensures defined liquidity opportunities for shareholders. Aberforth’ partners are significant investors in AGVIT, emphasizing alignment.
AGVIT’s portfolios currently have unusually low valuations, presenting potential for future returns. Low valuations attract M&A interest, and Aberforth engages to improve outcomes. Small UK quoted companies offer diversified dividends with strong balance sheets.
The Issues reflect AGVIT’s strategic approach and commitment to value-driven investment. The Issue Price for both ordinary shares and zero dividend preference shares is 100 pence per share. AGVIT aims to maintain a size comparable to ASLIT’s total assets as of April 30, 2024 (£222 million).
Aberforth Split Level Income Trust announces winding-up scheme with AGVIT