CQS Natural Resources Growth and Income PLC – Proposed Tender Offer for up to 100 per cent. of the issued share capital of the Company, value enhancing initiatives and Notice of a General Meeting
Following a comprehensive Strategic Review designed to identify a way forward to enhance value for all Shareholders, the Board is proposing to offer Shareholders a free choice between remaining invested in the Company with value enhancing initiatives (an enhanced dividend, lower management fees), and/or exiting for cash through the Tender Offer. Following the Tender Offer, the Company will remain a specialist investment trust, providing diversified access to under-researched mid and smaller-cap companies across the natural resources sector, globally, and with a strong record of outperformance over the medium and long term.
“We are pleased to put forward proposals that allow all shareholders to choose to remain invested in the Company or to exit for cash. The structure proposed, via the creation of a Tender Pool, protects those shareholders that choose to remain from the risks involved with liquidating a portion of the fund. We have also strived to strengthen the Company’s investment proposition going forward, with an attractive dividend policy, equivalent to approximately 8 per cent. per annum compared with the estimate of 3.5 per cent. per annum under the current policy, and reduced investment management fees. We believe this package provides the Company and the fund managers with the tools to continue to deliver strong performance in the natural resources sector. My fellow directors and I confirm that we will not tender our shares.”