Company Announcements

Publication of Circular

This announcement and the information contained in it are not for release, publication or distribution, directly or indirectly, in whole or in part, in or into, the United States of America (including its territories and possessions, any state of the United States and the District of Columbia), Australia, Canada, Japan, New Zealand, the Republic of South Africa, in any member state of the EEA or in any other jurisdiction in which the same would be unlawful.

 

17 April 2026

 

The Diverse Income Trust plc

(“ DIVI ” or the “ Company ”)

Publication of Circular

Further to the Company's announcement on 25 February 2026 in connection with the proposals for the reconstruction and voluntary liquidation of the Company (the “ Proposals” ), the Board is today publishing a circular (the " Circular ") putting forward the Proposals and convening the required General Meetings.

A copy of the Circular will be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. The Circular will also be available on the Company's website (https://www.diverseincometrust.com/) and at the registered office of the Company (19 th Floor, 51 Lime Street, London, EC3M 7DQ).

Introduction

As announced on 25 February 2026, following consultation with advisers and having considered Shareholder feedback, the Board believes that it is in the best interests of all Shareholders to liquidate the Company and give Shareholders the option to roll their investment into Premier Miton UK Multi Cap Income Fund (the " Sub-Fund "), a sub-fund of Premier Miton Investment Funds 3 (the " OEIC ") or to receive a cash exit at net asset value, in each case, less the costs of the Proposals (as defined below).

Since inception, the Company has delivered on its original objectives of providing an attractive and growing level of dividends coupled with capital growth over the long term through exposure to a diversified spread of companies with a multi cap approach. Since IPO in 2011, the Company has delivered a NAV total return of +323.85 per cent. including dividends of 49.21 pence per Ordinary Share, equivalent to a compounded +10.16 per cent. per annum (as at 31 March 2026).

The Company has traded at an average discount of 1.89 per cent. since inception. Notwithstanding, over the last 3 years, as sentiment towards the UK equity income sector has driven outflows, the discount has trended wider, trading at an average of 7.00 per cent. (as at 31 March 2026).

Since 2012, the Company has offered Shareholders an annual option to redeem up to 100 per cent. of their Ordinary Shares at either the prevailing net asset value at the redemption point, or (if a redemption pool is created) the realised value of the assets attributable to the redeeming shares. During the first decade of its life, the Board believes that this liquidity facility allowed the Company to trade at a tighter discount than its peers, with minimal redemptions as a result. However, the past three years have seen significant redemptions under the annual redemption facility that the Company offers to Shareholders. Most recently in 2025, the redemptions amounted to 30.8 per cent. of the issued Ordinary Shares at that time (excluding Ordinary Shares held in treasury). As a result, the size of the Company has reduced substantially to net assets of around £203.5 million (as at the Latest Practicable Date). Whilst the facility has historically provided liquidity for those wishing to sell their Ordinary Shares, more recently the Board believes that the reduced size of the Company has impacted upon the marketability of the Company to the detriment of all Shareholders. In particular the Board notes this has resulted in increasing costs (as a percentage of net assets), the inability to defend a narrow level of discount without further potential shrinkage in the size of the Company and the reduction in the liquidity of Ordinary Shares in the market.

Accordingly, the Board is today putting forward proposals to Shareholders for the voluntary liquidation of the Company by way of a scheme of reconstruction pursuant to Section 110 of the Insolvency Act 1986 (the " Scheme ").   Under the terms of the Scheme, Shareholders will be offered the opportunity to roll over their investment into the Sub-Fund, an open-ended fund also managed by Premier Fund Managers Limited (the " Investment Manager "), or to receive cash in respect of their investment in the Company, or a combination of both.

The opportunity to roll over into the Sub-Fund will provide Shareholders with the ability to maintain a similar investment approach. The Sub-Fund is managed by the same individuals at the Investment Manager who manage the Company’s portfolio, applying the same value-driven methodology. Over the period from 14 October 2011 (since when both the Company and the Sub-Fund have been in existence 1 ) to 31 March 2026, the Company's net asset value total return with dividends reinvested has been 348.60 per cent. (10.94 per cent. on an annualised basis) and that of the Sub-Fund has been 298.44 per cent. (10.03 per cent. on an annualised basis). Both portfolios have materially outperformed the UK market, as represented by the Deutsche Numis All Share Index, which has returned 215.26 per cent. (8.27 per cent. on an annualised basis) over the same period. The Sub-Fund has similar investment objectives to the Company, and a significant majority of portfolio holdings overlap. The Sub-Fund's investment objective and policy is to provide an income with capital growth over the long term, being five years or more, by investing in an actively managed portfolio with a minimum of 70 per cent. of its assets in shares in companies incorporated or domiciled in the UK.   It is larger than the Company with net assets of around £285.8 million (as at 31 March 2026), and benefits from a lower ongoing charges ratio.

The Options

Shareholders may elect, in whole or in part and in accordance with their personal investment requirements, for either or both of the following options:

(a)     the Rollover Option – rolling over some or all of their investment into Class B income shares to be issued by the Sub-Fund; and/or

(b)     the Cash Option – receiving cash in the liquidation of the Company in respect of some or all of their investment in the Company.

Shareholders (other than Restricted Shareholders) that make no Election (or no valid Election) will be deemed to have elected for Sub-Fund Shares.   The key features of the Sub-Fund are set out below and in Part 3 of the Circular.   Shareholders should also refer to the OEIC Prospectus and the Sub-Fund KIID which are available at https://www.premiermiton.com/funds/premier-miton-uk-multi-cap-income-fund/ .   The OEIC Prospectus and Sub-Fund KIID do not form part of the Circular (and the Board takes no responsibility for the contents of the OEIC Prospectus or the Sub-Fund KIID).

The Proposals

Under the Proposals, the Company will be wound up on the Liquidation Date by means of a members' voluntary liquidation pursuant to a scheme of reconstruction under Section 110 of the Insolvency Act 1986 and Shareholders may elect to receive Sub-Fund Shares in the Sub-Fund (being Premier Miton UK Multi Cap Income Fund) and/or cash in respect of all or part of their holding of Ordinary Shares in the Company.   Shareholders who elect to roll over their investment into the Sub-Fund will receive Sub-Fund Shares and, in consideration of such issue, the Company will transfer a portion of its net assets to the OEIC (for the benefit of the Sub-Fund).   In this way, it is envisaged that it should be possible for most UK resident Shareholders who hold their Ordinary Shares as investments to be given a tax-efficient rollover of their entitlements.

The Sub-Fund Shares will be issued at the prevailing net asset value per Sub-Fund Share as at 12.00 noon on the Effective Date.   Sub-Fund Shares issued pursuant to the Rollover Option will be issued without any initial charge and the investment minimum will be waived.

Shareholders who elect for the Cash Option will be sent a cheque in respect of their entitlement if they hold Ordinary Shares in certificated form or receive payment through CREST in respect of their entitlement if they hold Ordinary Shares in uncertificated form.

Shareholders' approval is required to implement the Proposals which will involve the reclassification of the Company's existing Ordinary Shares to give effect to the respective options for which each Shareholder has elected, the voluntary liquidation of the Company and the appointment of the Liquidators.

In order to consider and approve the Proposals, General Meetings have been convened for 12 May 2026 (the " First General Meeting ") and 26 June 2026 (the " Second General Meeting ").   The purpose of the Circular is to provide you with further details of the Proposals and the reasons why the Directors recommend that you vote in favour of the Resolutions to be proposed at the General Meetings.

The Resolutions to be proposed at the General Meetings, on which all Shareholders may vote, are required in order to obtain certain Shareholder authorities in accordance with the Companies Act 2006, the Insolvency Act 1986 and the Listing Rules, as follows:

(a)     at the First General Meeting, (i) to approve the terms of the Scheme set out in Part 2 of the Circular; (ii) to amend the Articles to give effect to the Scheme; (iii) to authorise the Liquidators to enter into and give effect to the Transfer Agreement, to distribute Sub-Fund Shares and cash to Shareholders in accordance with the Scheme, to purchase the interests of any Dissenting Shareholders to the Scheme and to authorise the Liquidators to apply to cancel the listing of the Reclassified Shares with effect from such date as the Liquidators may determine; and

(b)     at the Second General Meeting, amongst other things, to appoint the Liquidators and to wind up the Company.

Benefits of the Proposals

The Directors consider that the Proposals should have the following benefits for all Shareholders as compared to their current position, or under a liquidation:

(a)     they enable Shareholders to roll over some or all of their investment into the Sub-Fund which has a similar investment objective to the Company and is managed by the same individuals at the Investment Manager who manage the Company's portfolio, thereby maintaining a similar investment approach;

(b)     Shareholders electing for the Rollover Option will not suffer the full dealing costs that would be incurred on the realisation of the Company's portfolio in the event of a simple liquidation; and

(c)     Shareholders who may be subject to UK capital gains tax or corporation tax on chargeable gains should generally be able to roll over their investment into the Sub-Fund and thereby continue to receive investment returns without triggering an immediate liability to UK capital gains tax or corporation tax on chargeable gains.

Shareholders who elect for the Cash Option in respect of some or all of their investment will receive cash in the liquidation of the Company to the extent of their Election for the Cash Option.   Shareholders should note that, depending on their particular circumstances, this may trigger a chargeable gains tax liability.   Please refer to the paragraph headed "Taxation" in Part 4 of the Circular for further details.

Shareholders who are in any doubt as to the contents of the Circular or as to the action to be taken should immediately seek their own personal financial advice from an appropriately qualified independent adviser authorised pursuant to FSMA.

Conditions to the Scheme

The Scheme is conditional, among other things, upon:

(a)     the passing of all Resolutions to be proposed at (i) the First General Meeting and (ii) the Second General Meeting (or at any adjournments thereof) and upon any conditions of such Resolutions being fulfilled;

(b)     the FCA agreeing to amend the listing of the Ordinary Shares to reflect their reclassification as Reclassified Shares for the purpose of implementing the Scheme; and

(c)     the Directors and the OEIC ACD resolving to proceed with the Scheme.

In the event that any of the conditions referred to in paragraphs (a)(i) or (b) fails, the Second General Meeting will be adjourned indefinitely and the Scheme will lapse.

The Sub-Fund

The Sub-Fund is an open-ended investment fund whose investment objective and policy is to provide an income with capital growth over the long-term (being five years or more), by investing in an actively managed portfolio with a minimum of 70 per cent. of its assets in shares of companies incorporated or domiciled in the UK.   The Sub-Fund may also invest up to 30 per cent. of its assets in other investments such as listed securities in other geographical regions, government bonds and corporate (company) bonds, collective investment schemes and cash-like investments.

Please refer to Part 3 of the Circular for further details on the Sub-Fund, including details of the investment objective and investment policy of the Sub-Fund.

The Sub-Fund is managed by the same individuals at the Investment Manager that manage the Company's portfolio, applying a very similar investment approach as is applied to the Company’s portfolio.   The Sub-Fund has similar investment objectives to the Company and there is a significant overlap of portfolio holdings.   It is larger than the Company, with net assets of around £285.8 million as at 31 March 2026, and benefits from a lower ongoing charges ratio.

The OEIC (product reference number: 565733) is an open-ended investment company with variable capital incorporated in England and Wales and authorised by the Financial Conduct Authority as an undertaking for collective investment in transferable securities (UCITS scheme) with effect from 14 September 2011.   The Sub-Fund (being a sub-fund of the OEIC whose product reference number is 637739) is itself approved as a sub-fund of the OEIC.

The Sub-Fund Shares will not be admitted to listing and/or to trading by any authority or stock exchange.

The Sub-Fund Shares that will be issued pursuant to the Scheme are Class B income shares.

Full details of the mechanics of the Scheme and entitlements of Shareholders under the Scheme are contained within the Circular.

Interim dividends

The Company has declared a third interim dividend of 1.20 pence per Ordinary Share in respect of the financial year ending 31 May 2026, payable on 21 May 2026 to Shareholders on the register on 1 May 2026. The ex-dividend date will be 30 April 2026.

It is anticipated that the Company may pay a further dividend in advance of the Effective Date in order to ensure that the Company meets the distribution requirements to maintain investment trust status.   Information relating to the declaration and payment of such further dividend (if any) will be released by the Company via an RNS in advance of the Effective Date.

In light of the Proposals, the Company has also withdrawn its Dividend Reinvestment Plan (" DRIP "), previously managed by its Registrar, MUFG Corporate Markets. Therefore, Shareholders will no longer be able to automatically reinvest their dividend in Ordinary Shares.

Costs of the Proposals

The Company will bear its own costs and expenses incurred in connection with the Proposals.

Any liability for transfer taxes in respect of the transfer of certain assets to the Sub-Fund will be borne by the Sub-Fund, provided that, in those jurisdictions where it is customary for the liability for transfer taxes to be split between the transferor and the transferee, the Company shall bear such part of the transfer tax liability (as part of its own costs and expenses incurred in connection with the Proposals) to the extent that such part of the transfer tax liability is customarily borne by the transferor in the relevant jurisdiction.

The costs payable by the Company in connection with the implementation of the Proposals (excluding any costs associated with the realisation of the Cash Pool and the realignment of the Rollover Pool) are expected to be approximately £790,000 (including VAT, where applicable).   These costs have not been accrued in the Company's net asset value as at the Latest Practicable Date.

General Meetings

The implementation of the Proposals will require two General Meetings of the Company which have been convened for:

(a)     12.00 p.m. on 12 May 2026 at 1 Finsbury Circus, London EC2M 7SH (the " First General Meeting "); and

(b)     10.00 a.m. on 26 June 2026 at 1 Finsbury Circus, London EC2M 7SH (the " Second General Meeting ").

The notices convening these meetings are set out at the end of the Circular.   All Shareholders are entitled to attend and vote at the First General Meeting and the Second General Meeting and, on a show of hands, shall each have one vote and, on a poll, shall have one vote for every Ordinary Share held by them.

The Resolutions to be proposed at the General Meetings will, if passed, approve the Scheme and put the Company into liquidation, as further described below.

At the First General Meeting, Resolutions will be proposed which, if passed, will:

(a)     amend the Articles of Association in order to implement the Scheme and make provision for the issue of the relevant numbers of Sub-Fund Shares to Shareholders on a voluntary liquidation of the Company;

(b)     subject to the Scheme becoming unconditional, authorise the implementation of the Scheme by the Liquidators, including the entry into the Transfer Agreement by the Liquidators, the allotment of the relevant number of Sub-Fund Shares, by the Sub-Fund, to the Liquidators (who will renounce such shares in favour of the relevant Shareholders) and the realisation of the Cash Pool and distribution of cash by the Liquidators to the relevant Shareholders; and

(c)     subject to the Scheme becoming unconditional, authorise the Liquidators to purchase the interests of Dissenting Shareholders and to apply to cancel the listing of the Company's Ordinary Shares, with effect from such date as the Liquidators will determine.

If the Scheme is not approved by Shareholders at the First General Meeting, the Proposals will be abandoned and the Second General Meeting will be adjourned indefinitely.   In this event, the Board will consider alternative proposals for the future of the Company, the implementation of which may result in additional costs being incurred.

At the Second General Meeting, a special resolution will be proposed which, if passed, will place the Company into voluntary liquidation, appoint the Liquidators and agree the basis of their remuneration, instruct the Company Secretary to hold the books to the Liquidators' order, and provide the Liquidators with appropriate powers to carry into effect the amendments to the Articles made at the First General Meeting.   The Resolution to be proposed at the Second General Meeting is conditional upon the Directors and the OEIC ACD resolving to proceed with the Scheme.

The Resolutions will require the approval of 75 per cent. or more of the votes cast at the relevant meeting, whether in person or by proxy.

 

 

Expected Timetable

                                          2026

Latest time and date for receipt of
proxy appointments from Shareholders for  12.00 p.m. on 8 May
the First General Meeting

Latest time and date for receipt of the
Form of Election and/or TTE Instructions  1.00 p.m. on 8 May
from Shareholders wishing to elect for
the Cash Option

Latest time and date for receipt of the
Tax Residency Self-Certification Forms    1.00 p.m. on 8 May
from Unverified Shareholders wishing to
elect for the Rollover Option

Scheme Entitlements Record Date           6.00 p.m. on 8 May

Ordinary Shares disabled in CREST         6.00 p.m. on 8 May

Suspension of trading in Ordinary Shares  7.30 a.m. on 11 May

First General Meeting                     12.00 p.m. on 12 May

Calculation Date                          11.59 p.m. on 23 June

Latest time and date for receipt of
proxy appointments from Shareholders for  10.00 a.m. on 24 June
the Second General Meeting

Reclassification of the Ordinary Shares   8.00 a.m. on 25 June

Suspension of dealings in Reclassified    7.30 a.m. on 26 June
Shares

Second General Meeting                    10.00 a.m. on 26 June

Appointment of the Liquidators            26 June

Effective Date and Transfer Agreement     26 June
executed and implemented

Sub-Fund Shares issued pursuant to the    26 June
Scheme

First day of dealing in Sub-Fund Shares   29 June

Contract notes expected to be despatched  As soon as practicable following the
in respect of Sub-Fund Shares issued      Effective Date
pursuant to the Scheme

Cheques expected to be despatched and     Expected to be around 10 Business Days
CREST payments made to Shareholders in    from the Effective Date
respect of the Cash Option

Cancellation of listing of Reclassified   After the Effective Date
Shares

 

 

The times and dates set out in the expected timetable of events above and mentioned throughout this announcement may be adjusted by the Company in which event details of the new times and dates will be notified, as requested, to the Financial Conduct Authority, the London Stock Exchange and, where appropriate, Shareholders.  All references to time in this announcement are to UK time.

Note 1: The Company was launched on 28 April 2011 and the Sub-Fund was launched on 14 October 2011.

 

Enquiries

 

The Diverse Income Trust plc
                                             Contact via Panmure Liberum LimitedAndrew Bell, Chair

Premier Miton Group plc
                                             01483 306090
Gervais Williams, Martin Turner, Claire LongPanmure Liberum Limited
                                             020 3100 2000
Alex Collins, Tom Scrivens, Ashwin Kohli

 

LEI:  2138005QFXYHJM551U45