Shareholder Update - Ordinary Shares
(Thomson Reuters ONE) - Downing Protected VCT II plcShareholder Update - Ordinary Shares4 August 2009The Company's Chairman, Hugh Gillespie, has today sent a letter toall Ordinary Shareholders updating them on developments within theOrdinary Share pool as follows:"Further capital distributionI am pleased to inform you that your Company's Ordinary Share poolhas achieved a number of further investment realisations. Each ofthe realisations that took place were at (or close to) the previousvaluations and were achieved with the assistance of funding from thenew 'C' Share pool. As a result, the Board has declared a dividend of8p per Ordinary Share, which will be paid on 28 August 2009 toOrdinary Shareholders on the register at 14 August 2009.Returns from the investmentFollowing the payment of the above dividend, Ordinary Shareholderswill have received total proceeds of 89.0p per share compared to theoriginal cost, net of income tax relief, of 60p per share. Thetax-free return for original subscribers over the life of theinvestment is now 10.8% p.a., which is equivalent to 18.0% gross to a40% taxpayer. In the Board's opinion this represents a satisfactoryoutcome over the last four years.Performance incentiveThe Company has redeemed the loan notes held by the Board andManagement under the performance incentive arrangements at a priceequivalent to 5.0p per Ordinary Share. A total consideration of 8.5pper Ordinary Share was due under the performance incentivearrangements, which was higher than we originally anticipated becausefunds have been returned to Shareholders at a much quicker rate thanoriginally envisaged. The Board and Management Team have agreed toaccept the lower sum (and to forgo any further amounts that thatmight have become due) for the benefit of Shareholders. As a result,the above dividend is 3.5p per share higher than would have been thecase if the full entitlement under the performance incentive had beentaken. The Board and Management Team feel that this provides a fairoutcome for Shareholders.OutlookAfter payment of the above dividend, there will be little value leftin the investment. The Ordinary Share pool will have an estimated NetAsset Value of approximately 1.5p per Ordinary Share, represented bya small number of investments. The Investment Manager believes thatthe current market value of some of the remaining investments isunacceptably low and is, therefore, unwilling to exit at theseprices. A number of options are being pursued, which may or may notlead to a sale of the remaining investments at prices higher than thecurrent valuations. It would be prudent for Ordinary Shareholders toassume that they will not receive any further returns from thisinvestment in the near future, however, if and when profitable exitsfrom the remaining investments are achieved, these proceeds will bedistributed to Shareholders."---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 04.08.2009 - 13:49 Uhr
Sprache: Deutsch
News-ID 4324
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Downing Protected VCT II PLC (Nachricht senden)
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