Jupiter UK Growth Investment Trust (JUKG) Lays Out its Reconstruction Proposals
Jupiter UK Growth Investment Trust (JUKG) has laid out its plans to liquidate the company. In December last year, the trust announced it had decided to team up with BAF (Brown Advisory Funds) so it could offer its investors a rollover option.
This would mean JUKG shareholders will receive replacement shares in the company’s Global Leaders fund (BAGL). BAF has already agreed to waive the regular requirements of the initial investment amount, minimum shareholding, and other general investment requirements.
Shareholders making use of this opportunity will be placed in Class B shares as this class has a lower management fee compared to other share classes.
It was in October last year when the trust first announced it was planning to liquidate all its assets. The firm has not received much encouragement from investors owing mainly to its poor performance for a few years running.
The liquidators have worked out the plan in three pools:
As per the board, assets and cash within the liquidation pool will have to meet the cost of winding up the company, including liabilities. The remaining cash and assets will go to the rollover and cash pools, determined by shareholder elections.
To give an idea of how the liquidation will work, the board used the 17th of February as the cutoff calculation date. Based on subsequent calculations, assuming no change in assets to the 23rd of March, investors will get 151.5145 BAGL shares in cash for every 1k ordinary shares they hold.
The proposal has not been finalized yet as the board will have to conduct two more general meetings to finalize the deal. The first of these meetings will be held on the 15th of March while the second is planned for the 26th of the same month. To pass any resolution discussed in the meetings, the resolution will require at least 75% votes in favor.
BAGL shares will be issued on the 26th March 2021. For those who choose the rollover option, contract notes will be dispatched the week after the issuance of the shares.