Ground Rents Income Fund PLC Announcement of General Meeting (6212Q)
October 22 2019 - 2:00AM
UK Regulatory
TIDMGRIO
RNS Number : 6212Q
Ground Rents Income Fund PLC
22 October 2019
GROUND RENTS INCOME FUND PLC ("GRIO" OR THE "COMPANY")
Capital Reduction and Deeds of Waiver
Ground Rents Income Fund plc announces that it is convening a
meeting of its Warrantholders and a general meeting of its
Shareholders, respectively at 10.00am and 10.30am on 8 November
2019 at the Company's registered office, 1 London Wall Place,
London, EC2Y 5AU, for the purposes of seeking the approval of
Shareholders to:
-- cancel the Company's share premium account in order to create
distributable reserves to better facilitate the payment of future
dividends ("Capital Reduction"); and
-- release the Shareholders, the Directors and a former Director
from potential claims regarding the making of certain historic
dividends otherwise than in accordance with the provisions of the
Companies Act 2006.
In addition, approval will be sought from Warrantholders to
allow the Company to declare distributions from the capital reserve
arising from the Capital Reduction.
The Company's investment objective is to generate consistent and
significant income returns for its Shareholders. To ensure that the
Company can continue to pay quarterly dividends to its Shareholders
in line with past practice, the Board proposes that the Company
undertakes a capital reduction to create additional distributable
reserves, to support future dividend payments. The Board has
concluded that by cancelling the Company's share premium account,
the reserve thereby created would allow the Company greater
flexibility to return dividends to Shareholders, than would
otherwise be the case.
The proposed capital reduction of approximately GBP45.8 million
will, if approved by the Shareholders, and subsequently approved by
the Court, give rise to a distributable capital reserve of the
Company and from which (subject to the approval of the
Warrantholders) future distributions to Shareholders can be paid.
It is anticipated that, following Shareholder approval, and subject
to the Court's hearing timetable and further requirements of the
Companies Act 2006 being satisfied, the reduction should take
effect in December, following which it is the Board's intention
that a dividend for the period July to September 2019 will be
declared and paid before the end of December 2019.
In accordance with the dividend policy announced on 7 August
2019 as part of the Company's strategy update the Company's
anticipated interim dividend timetable for 2020 is as follows:
Period Expected payment date
October - December February 2020
2019
----------------------
January - March 2020 May 2020
----------------------
April - June 2020 August 2020
----------------------
July - September 2020 November 2020
----------------------
In addition, the Company also intends to regularise the position
with respect to historic dividends, in relation to which the
Company has recently become aware that such dividends were made
otherwise than in accordance with the provisions of the Companies
Act 2006. In order to put the potentially affected parties in the
position which they were always intended to be, the Company is
proposing to waive any and all claims which it has or may have in
respect of either current or former shareholders, or current or
former directors, in relation to such dividends.
The text of each of the circulars convening the meetings of the
Shareholders and Warrantholders of the Company can be found at the
following location:
http://www.rns-pdf.londonstockexchange.com/rns/6212Q_1-2019-10-21.pdf
22 October 2019
FOR FURTHER INFORMATION CONTACT:
Schroder Real Estate Investment Management Limited
James Agar / Matthew Riley
020 7658 6000
N+1 Singer (Broker)
James Maxwell / Ben Farrow
020 7496 3000
Tavistock (Media)
James Whitmore / Jeremy Carey
020 7920 3150
Appleby Securities (Channel Islands) Limited (Sponsor)
Andrew Weaver / Angharad Prescott
01481 755 600
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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