EP Global Opportunities Trust plc
25 October 2021
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014. This
announcement has been authorised for release by the Company's Board
of Directors.
Change of Management Arrangements and
Tender Offer
EP Global Opportunities Trust plc
Legal Entity Identifier: 2138005T5CT5ITZ7ZX58
Management arrangements
The Board of EP Global Opportunities Trust plc (the
"Company") is pleased to announce that following a review of
the strategic direction of the Company, as announced in the
Half-Yearly Report for the period to 30 June
2021, it intends to change the Company’s management
arrangements by becoming a self-managed investment trust. The Board
will assume overall control over the Company’s investment policy
and will have overall responsibility for the Company’s activities.
It is proposed that the Company’s present portfolio manager, Dr
Sandy Nairn, will be appointed as a
Director and Dr Nairn will have responsibility for day-to-day
investment management of the Company.
Proposed change in investment
objective and policy
In connection with the changes in management arrangements, the
Company intends to seek Financial Conduct Authority and shareholder
approval to amend its investment objective and policy. The Company
wishes to expand its investment objective of providing shareholders
with an attractive real long-term total return by investing
globally in undervalued securities by enabling investment also in
other financial assets; and to amend the investment policy to
permit investment in a diversified portfolio of equity and
equity-linked securities (both listed and unquoted), investments in
other investment companies and funds which provide exposure to a
wide range of financial asset classes and to allocate a portion of
portfolio assets to be managed by one or more specialist investment
sub-advisors (the "New Investment Policy").
Heads of terms
The Company has entered into heads of terms ("HOT") with
Franklin Templeton Investment Trust Management Limited and Dr Nairn
in respect of the new management arrangements. The arrangements are
subject to finalisation of full legal documentation. Under the HOT
it has been agreed that Dr Nairn will continue to work for the
Franklin Templeton group ("FT") and as part of this
engagement he will be responsible for a new sub-advisory
arrangement which the Company will enter into with Franklin
Templeton Investment Management Limited. It is expected that the
sub-advisory arrangement will initially be for 70 per cent. of the
Company's portfolio.
Tender offer
The Board believes that most shareholders will wish to maintain
their investments in the Company, but recognises that some may wish
to realise part, or potentially all, of their shareholding. In
order that such shareholders will have the opportunity to do so the
Company intends to put forward a tender offer for approval by the
shareholders (the "Tender Offer").
The Tender Offer will be made conditional on shareholder
approval being obtained at the General Meeting. The Board is
satisfied that, following the Tender Offer, the Company will remain
an attractive size with sufficient liquidity.
Next steps and consultation
The Board intends to undertake consultation with the
shareholders of the Company on the proposals in the coming
weeks.
A circular regarding the proposals, including a notice convening
the General Meeting and details of the New Investment Policy and
Tender Offer, will be published in due course.
For further information, please contact:
Dr Sandy Nairn
0131 270 3800
Kenneth J Greig
0131
270 3800
Franklin Templeton Investment Trust Management Limited
5 Morrison Street
Edinburgh
EH3 8BH
25 October 2021