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LONDON - The European Smaller Companies Trust PLC (ESCT) announced Wednesday it will acquire substantially all net assets from European Assets Trust PLC (EAT) through a scheme of reconstruction, following approval at EAT’s General Meeting.
The transaction will involve issuing 131,128,841 new ordinary shares in ESCT to eligible EAT shareholders, based on a conversion ratio of approximately 0.428444 ESCT shares per EAT share. The calculation used an ESCT fair asset value per share of 231.734700 pence and an EAT rollover fair asset value per share of 99.285552 pence.
Admission of the new shares to the Official List of the Financial Conduct Authority and to trading on the Main Market of the London Stock Exchange is expected Thursday, October 16, at 8:00 am.
Following the issuance, ESCT’s share capital will comprise 410,375,045 ordinary shares, with 51,733,676 shares held in treasury. The total voting rights in the company will be 358,641,369.
The acquisition is being executed under section 110 of the Insolvency Act 1986 as part of EAT’s voluntary winding up process.
Fractions of new shares arising from the conversion ratio will not be issued, with entitlements rounded down to the nearest whole number, according to the company’s statement in a press release.
Winterflood Securities Limited is serving as advisor on the transaction.
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