Alternative investment fund GLI Finance has announced plans to allow its zero dividend preference (ZDP) shareholders to exchange up to 25 per cent of their shares for cash.
The tender offer is subject to the approval of shareholders, and an extraordinary general meeting will be held to discuss this on 6 March 2020, at GLI’s Guernsey headquarters.
“Since the extension of the life of the company’s ZDP Shares to 5 December 2020, the company has continued its process of selling down its loan exposure to raise cash, with the intention of using this cash to fund and develop the group’s business in the interests of shareholders as a whole but also, in the shorter term, to effect the tender offer of ZDP shares and to satisfy the final capital entitlement of the ZDP shareholders,” said the firm in a stock market announcement.
The offer values each ZDP share at 133.3p, in line with the accrued capital entitlement per ZDP share as at 6 March – the expected date of completion.
Assuming the full entitlement of ZDP shares are tendered, the aggregate tender price would be approximately £4.08m.
The board added that some ZDP shareholders may wish to switch their exposure into GLI bonds and it “may consider this appropriate for future recommendation”.
Once tendered, the ZDP shares may not be sold, transferred, charged or otherwise disposed of other than in accordance with the tender offer.