LONDON (dpa-AFX) - Monks Investment Trust Plc (MNKS.L), on Tuesday, announced that its Board has agreed to the heads of terms for a proposed combination of the Company with the assets of The Independent Investment Trust plc.
The combination, if approved by each company's shareholders, will be implemented through a scheme of reconstruction pursuant to section 110 of the Insolvency Act 1986, resulting in the voluntary liquidation of IIT and the rollover of its assets into the company in exchange for the issue of new Monks shares to IIT shareholders, with IIT shareholders offered the option of a full or partial cash exit.
Shareholders in Monks will benefit from an increase in scale, allowing the enlarged Monks to spread fixed costs over a larger cost base, while also improving liquidity and aiding marketing; an inflow of cash to Monks's portfolio which can be redeployed at a potentially advantageous stage of the performance, discount and market cycles; and the addition to Monks's portfolio of a ready-assembled collection of UK growth stocks which the Managers have assessed for potential upside and portfolio fit.
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