Street Calls of the Week
LONDON - European Assets Trust PLC (LSE:EAT) announced Monday that its cash option for shareholders as part of its proposed combination with The European Smaller Companies Trust PLC (ESCT) was oversubscribed, with elections representing 30.3% of issued ordinary shares.
The cash option, which was limited to 15% of the company’s issued ordinary shares (excluding treasury shares), received elections for 109,241,263 shares. Due to the oversubscription, shareholders’ basic entitlements will be honored in full, while excess applications will be scaled back, with approximately 23.5% of valid excess applications being satisfied.
Following the scaling back process, 85% of EAT’s ordinary shares will roll over into new ESCT shares, with the remaining 15% receiving the cash option. This results in 306,058,888 ordinary shares being reclassified with "A" rights (entitling holders to receive new ESCT shares) and 54,010,391 shares with "B" rights (entitling holders to cash).
The company has requested approval from the Financial Conduct Authority and London Stock Exchange for the reclassification of ordinary shares effective from 8:00 a.m. Tuesday. Trading in the reclassified shares is expected to be suspended at 7:30 a.m. on October 15.
A further announcement regarding the results of the second general meeting and details of entitlements under the scheme is expected on October 15, according to the company’s statement based on a press release.
The proposed transaction follows the company’s earlier announcement on October 3 regarding the results of its first general meeting related to the recommended combination and voluntary winding-up of EAT.
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