The Diverse Income Trust Plc - Voluntary Redemption of Ordinary Shares
VOLUNTARY REDEMPTION OF ORDINARY SHARES
YOU DO NOT HAVE TO TAKE ANY ACTION IF YOU WISH TO RETAIN YOUR SHARES.
Under the Company’s Articles of Association, the Company operates an annual voluntary redemption facility through which shareholders may request the redemption of all or part of their holding of redeemable Ordinary Shares of 0.1p each in the Company (“Ordinary Shares”) for cash on 31 May in each year (or on the last working day before this date).
There is no requirement for shareholders to take any action should they wish to retain their Ordinary Shares. As at close of business on
A redemption of Ordinary Shares may be subject to income tax and/or capital gains tax. In particular, private shareholders that sell their shares via the redemption mechanism could find they are subject to income tax on the gains made on the redeemed shares rather than the more usual capital gains tax on the sale of their shares in the market. Shareholders are advised to seek professional advice on their individual circumstances from their stockbroker, accountant, tax adviser or other independent financial adviser, including in relation to the tax treatment of their redemption proceeds.
The investment objective of the Company is to provide shareholders with an attractive and growing level of dividends coupled with capital growth over the long term. None of the Directors of the Company will be redeeming any of their shares under the redemption facility.
Shareholders submitting valid requests for the redemption of Ordinary Shares will have their shares redeemed at the Redemption Price which is calculated on either of the following bases, at the absolute discretion of the Directors:
1. The Directors can elect to divide each of the Company’s portfolio holdings in proportion to the percentage of shareholders opting for redemption and to place those shares in aRedemption Pool to be sold via the stock market. When complete, the realisation proceeds after deduction of costs would be distributed to redeeming shareholders pro rata. It should be noted that the liquidation of aRedemption Pool can be expected to take some weeks or months, and the final capital sum may not amount to the initial valuation of theRedemption Pool ; or
ii. If the percentage of
The Directors may alternatively arrange for shares requested for Redemption to be sold in the market at the Dealing Value, provided that the Dealing Value obtainable is no less favourable to redeeming shareholders.
The Directors are minded to approve all redemption requests unless there are exceptional reasons why this would be contrary to the interests of shareholders as a whole.
The Directors of the Company have, within the terms of the Company’s Articles of Association, full discretion over the operation of the redemption facility and the calculation of the Redemption Price.
Certificated Shareholders wishing to request the redemption of all or any of their Ordinary Shares at the proposed
The relevant dates for the
1 May 2024 Latest date for receipt of Redemption Requests and certificates for certificated shareholders3.00 pm on1 May 2024 Latest date and time for receipt of Redemption Requests and TTE instructions for uncertificated shares via CREST5.00 pm on31 May 2024 The Redemption Point Company to notify Redemption Price and dispatch redemption monies; or if the redemption is to be On or before14 June 2024 funded by way of aRedemption Pool , Company to notify the number of shares being redeemed. Notification of Redemption Price and dispatch of redemption monies to take place as soon as practicable thereafter On or before28 June 2024 Balance certificates to be sent to shareholders (where applicable)
Further details of the redemption facility are set out in the Company’s Articles of Association or are available from the Company Secretary.
Defined terms in this announcement have the same meaning as set out in the Articles of Association, a copy of which may be obtained from the Company Secretary.
LEI: 2138005QFXYHJM551U45