Montanaro European Trust to enhance liquidity with new measures

Published 16/04/2025, 16:24
Montanaro European Trust to enhance liquidity with new measures

LONDON - Montanaro European Smaller Companies Trust plc (the "Company") has issued a circular today detailing upcoming corporate actions aimed at increasing shareholder value and improving share liquidity. The circular, released following an initial announcement on March 27, 2025, outlines two key proposals set for shareholder voting at the upcoming General Meeting on May 15, 2025.

The first resolution seeks to renew the Company’s authority to repurchase up to 14.99% of its issued ordinary share capital, equating to a maximum of 25,948,647 Ordinary Shares. This move is intended to extend the Company’s capacity to maintain an active share buyback policy, a strategy used by companies to reduce the number of shares on the market, often with the aim of increasing the value of remaining shares.

In addition to the share buyback program, the second resolution proposes the implementation of a bi-annual tender offer facility. This facility would permit the Company to repurchase up to 10% of its issued ordinary share capital, or up to 17,310,638 Ordinary Shares. Each tender offer will be capped at 5% of the Ordinary Shares in issue to safeguard current shareholders and manage liquidity in the underlying portfolio efficiently. The first tender offer is anticipated in November 2025, following the interim results, with a second following the annual results in June 2026.

The Company will convene the General Meeting at the offices of Juniper Partners Limited in Edinburgh, where shareholders will vote on these resolutions. The Circular and Notice of General Meeting are available for review on the Company’s website and have been submitted to the National Storage Mechanism for public inspection.

These proposals are part of Montanaro European Smaller Companies Trust plc’s broader strategy to enhance shareholder returns and market liquidity. The information in this article is based on a press release statement from the Company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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