River and Mercantile Group PLC RMMIC Update (6434W)
November 15 2017 - 1:35PM
UK Regulatory
TIDMRIV
RNS Number : 6434W
River and Mercantile Group PLC
15 November 2017
15 November 2017
LEI: 2138005C7REHURGWHW31
River and Mercantile Group PLC ("the Company")
River and Mercantile UK Micro Cap Investment Company Limited
River and Mercantile Group PLC ("the Company") announces that it
has been informed by the Board of River and Mercantile UK Micro Cap
Investment Company Limited ("RMMIC") that RMMIC intends to
implement a partial compulsory redemption of shares in RMMIC in
accordance with the prospectus published at the time of RMMIC's IPO
in November 2014. RMMIC intends to return approximately GBP15
million, less the costs of the redemption, to its shareholders at a
price based on RMMIC's NAV per share at the close of business on 10
November 2017. Further detail of the RMMIC partial compulsory
redemption is available in the RMMIC RNS of 15 November 2017 (RNS
Number 6108W).
The Company's subsidiary River and Mercantile Asset Management
LLP ("RAMAM") is the appointed investment manager of RMMIC. RAMAM
is entitled to receive a performance fee based on the amount by
which RMMIC's investment portfolio outperforms the total return of
its benchmark when RMMIC implements a compulsory redemption of
shares. Accordingly, as a result of the substantial outperformance
delivered for shareholders of RMMIC, RAMAM is due to receive a
performance fee of approximately GBP1 million in December 2017,
following the compulsory redemption of the RMMIC shares.
James Barham, Chief Executive of RAMAM said;
"It is rewarding to see the redemption process operating
efficiently and in line with our expectations at the time RMMIC was
formed. This innovative structure ensures that we retain the
ability to invest in this exciting area of the market without the
inherent liquidity issues that would be associated with a continued
unconstrained growth in assets. The strong returns generated are a
testament to our PVT investment process".
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Sally Buckmaster
Company Secretary
River and Mercantile Group PLC
For further information please contact:
River and Mercantile Group PLC +44 (0)20 3327 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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