Information on the launch of Aberforth Geared Value & Income Trust plc
Aberforth Geared Value & Income Trust plc (AGVIT) is an investment trust, that was launched on 1 July 2024 following the reconstruction and winding up of Aberforth Split Level Income Trust plc (ASLIT). The trust invests in a diversified portfolio of small UK quoted companies and had a total asset value at launch of £147.6m. Aberforth Partners are the investment managers of AGVIT. AGVIT’s capital structure comprises ordinary shares with gearing via Zero Dividend Preference shares. Both classes of shares were issued at 100 pence per share at launch. The level of gearing for the ordinary shareholders in AGVIT at launch was in the ratio of 8:3, AGVIT Ordinary Shares to AGVIT ZDP Shares.
AGVIT’s investment objective is to provide AGVIT's ordinary shareholders with high total returns, incorporating an attractive level of income, and to provide AGVIT's ZDP shareholders with a pre-determined final capital entitlement on AGVIT's planned winding-up date of 30 June 2031. The gross redemption yield of the AGVIT ZDP shares at launch was 7% as published in the prospectus. On the planned winding up of the company on 30 June 2031, ZDP shareholders have a final capital entitlement of 160.58 pence per ZDP share. AGVIT’s portfolio construction aims to deliver an attractive yield and is also designed to take advantage of the significant recovery potential of UK equities in general and smaller companies in particular.
The Company’s investment objective, policy, and strategy are set out in detail in the Company’s prospectus.
Following the election results (see the announcement issued on 27 June 2024) in connection with the reconstruction and winding up of Aberforth Split Level Income Trust plc (ASLIT) and the Offer for Subscription and Placing the demand for Aberforth Geared Value & Income Trust plc (AGVIT) Ordinary Shares and ZDP shares at 100 pence was as follows:
| Demand for AGVIT Ordinary Shares | Demand for AGVIT ZDP Shares | |
|---|---|---|
| ASLIT Ordinary Shareholders under the scheme | £104.5m | n/a |
| ASLIT ZDP Shareholders under the scheme | £0.2m | £28.1m |
| AGVIT Placing | £0.3m | £9.2m |
| AGVIT Offer for Subscription | £2.3m | £2.9m |
| Total Demand | £107.3m | £40.2m |
107.3 million AGVIT Ordinary Shares and 40.2 million AGVIT ZDP Shares were issued under the Scheme, Placing and Offer for Subscription in aggregate, to satisfy demand as shown in the table above.
Elections under the Scheme, Offer for Subscription and applications under the Placing have been met in full other than one individual investor’s subscriptions, which were subject to marginal scale back, in order to have a matched ratio of AGVIT Ordinary Shares to AGVIT Zero Dividend Preference Shares of 8:3.
107,331,000 AGVIT Ordinary Shares and 40,249,000 AGVIT ZDP Shares were admitted to listing on the Official List of the UK Listing Authority and to trading on the main market of the London Stock Exchange at 8.00 a.m. on 1 July 2024.
Shareholder queries
Shareholders who have any queries on the allocation of new AGVIT shares should contact the Corporate Action line at Link Group on +44 (0)371 664 0321.
For all general shareholder queries please contact Link Group on +44 (0)371 664 0300.
Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. The helplines are open between 9.00 a.m. to 5.30 p.m., Monday to Friday excluding public holidays in England and Wales. Please note that Link Group cannot provide any financial, legal or tax advice and calls may be recorded and monitored for security and training purposes.
Liquidation queries
All queries relating to the Company (Aberforth Split Level Income Trust plc) please contact either Derek Hyslop or Richard Barker both of Ernst & Young on +44 (0)131 777 2300.
Other queries
For queries not related to shareholdings, voting or election forms please get in touch with us.
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