Barney Scott
08 Mar 2017
disposal date for CGT purposes of cash option I've now seen the full proposals. Shares are reclassified into A and B (the latter being the cash option), and dealing in them starts on 3rd April. The 'Calculation date' is 4th April. The reclassified shares are suspended 5th April. The 2nd General Meeting to wind up the old company, is 6th April. The announcement of the cash pool and results of elections is 7th April (how that happens *after* the reclassified shares were dealt in for 2 days, I can't work out). Cancellation of listing of reclassified shares, and allocation of cash option proceeds, happens week starting 18th April.So my reading of that is that the date for capital gains purposes of the cash option is in the 17/18 tax year - we wouldn't get the cash until then, anyway. But the split between A and B shares is made in the 16/17 tax year - does that matter? I found one web comment on this from February, when I think no precise dates had been announced, that just said "be careful - we don't know yet": [link]
nncalc
15 Feb 2017
Now it is 60% The actual cash offer will come through in March. Two changes announced this week teel us, first, that there will be repurchases of shares to keep the discount below 5% - the current level. Second, the offer to give cash for 40% of the shares has been increased to 60% of the shares. At present values, I can look forward to 354p a share for at least 60% of my holding. Little wonder the shares responded by rising 3%
nncalc
26 Dec 2016
Re: Merger and Change of Objective I've struggled a bit with this one. Perhaps Aberdeen will make a good job of the new mandate and I will sell some shares at 343p (97.25% of NAV) which will be good. On the other hand, AUKT are still buying in shares on a daily basis - shrinking the size of the trust, but giving a small enhancemenmt to NAV. Does not show me much confidence in the future. Also the market, often the best judge, has brought about a small shrinkage of the discount to 7.3% which is less than the 10% of BIST. Will anyone want the trust, especially while it is building up a record? The poor souls who believed all the stuff about "multi asset approach" in BIST have had a miserable time. Their tender is limited to 20% and a discount of 4%. Oh, they will also see a significant fall in the div, which was the only reason to buy British Assets which transformed itself into BIST. My present thinking is that there must be loads of moribund shareholders on the AUKT register who will not be lodging the tender application (for 100% of their holding) . There is some evidence of confusion even on the sophisticated iii discussion boards so I am dreaming of shifting 50% (or more!!!) at a good price. After that I reckon a 10% discount for the rump. I intend to hold while the discount is at the present level but will go at 5% if the managers' buy in policy brings this happy event. Would appreciate any thoughts from Wise Men as Epiphany approaches.
dollarking
15 Dec 2016
Re: Merger and Change of Objective 'The Board believes that the revised investment objective and policy of ADIGT, following FCA and required Company and BIST Shareholder approvals, should be attractive for Shareholders as a whole. The focus of ADIGT will be on delivering greater capital stability over the medium term than a long-only equity strategy (like that of AUKT) and with volatility significantly less than that of equities, Ah stuff it, whom I'm trying to kid.....we're putting the fee up from 0.29% to 0.5%, deal with it.'
schwee
07 Dec 2016
Re: Merger and Change of Objective I think you will be able to tender 100% of your shares for cash. You will only get scaled back if more than 40% of the outstanding shares are tendered.As for the discount post merger, it will be nearer 20% than 10 IMHO.Aberdeen have so many conflicts of interest, no wonder the punters are exting their funds as fast as they can go.
red walton
05 Dec 2016
Re: Merger and Change of Objective Wynford2,Agreed, an all cash offer should be made in view of radical change of objectives. My inclination is to sell now, hanging on to vote against is probably not going to achieve anything. I do not want my 60% merged with BIST>
Wynford2
05 Dec 2016
Re: Merger and Change of Objective I can't see any connection between a tracker and the proposed new multi-asset fund.The board are just trying to lock in at least 60% of the cash for their managers Aberdeen and keep some of their jobs.Disgraceful.A 100% cash option at NAV less costs should be offered to AUKT holders who don't want to join in the new game, or just a straight liquidation of the trust as they admit an IT is no longer the way to do a tracker.It is very likely that the new trust will drop straight to the 10% discount of BIST, or more; there is no discount control offered.Vote against, but they seem to think they have this already tied up with the big boys.
red walton
02 Dec 2016
Merger and Change of Objective I think I have got this correct - it is being proposed to merge AUKT with Blackrock Income Strategies (BIST) (currently an investment disaster) to produce a new trust (ADIGT) with a non-tracking objective. Any thoughts? I am not happy with this.
