Restructure Proposals
September 19 2003 - 6:00AM
UK Regulatory
RNS Number:9509P
Govett Strategic Trust plc
19 September 2003
Govett Strategic Trust plc
Outline proposals for the reconstruction of the Company
Following a thorough review of options available to Govett Strategic Trust plc
("Govett Strategic" or the "Company"), the Directors today announce outline
proposals (the "Proposals") for the reconstruction of the Company with the aim
of enhancing shareholder value and maintaining long term and stable management
for the assets of the Company.
Under the proposals, Govett Strategic will be wound up and Govett Strategic
shareholders ("Shareholders") will be able to elect to receive shares in
Fidelity Special Values PLC ("FSV") and/or to receive cash. Shareholders who
make no election under the Scheme will receive cash.
The outline terms of the proposal are for a Scheme of reconstruction of the
Company (the "Scheme") under which:
* For the purpose of determining the entitlement of Shareholders to FSV
shares under the Scheme, a value equal to 99.75% of the formula asset value
("FAV") of a Govett Strategic Share on the calculation date for the Proposals
will be used. FSV shares will be issued to electing Shareholders at a premium
of 3.25% to the diluted net asset value of FSV on the calculation date for
the Scheme. Fidelity Investments, the manager of FSV, will make a
contribution to FSV of an amount equal to 0.75% of the aggregate value of the
assets attributable to those Shareholders who elect for FSV shares.
* For the purpose of determining the entitlement of Shareholders to cash
under the Scheme, a value equal to 99.25% of the FAV of a Govett Strategic
Share on the calculation date will be used.
* Each side will bear its own costs in relation to the proposals.
The Board expects to write to Shareholders in due course setting out the details
of these proposals and convening the extraordinary general meetings for their
implementation.
The Proposals are conditional on obtaining satisfactory tax clearances and upon
the approval of Govett Strategic Shareholders and FSV Shareholders.
FSV is an investment trust which was launched in 1994 with an investment
objective of achieving long term capital growth from an actively managed
portfolio of special situation investments, consisting primarily of securities
listed or traded on the London Stock Exchange. It is managed by Anthony Bolton
and currently has net assets of approximately #140 million.
Sir John Riddell, Chairman of Govett Strategic said "In looking at the options
available, it was clear to the Board that this solution provides excellent
management and creates value for shareholders."
Enquires
Sir John Riddell, Chairman 0191 279 4222
Angus Gordon Lennox 020 7588 2828
Cazenove & Co. Ltd
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