AXA Property Trust Ltd - Receipt of Proposal

PR Newswire (UK Disclosure) |

AXA Property Trust Limited
(a closed-ended investment company incorporated with limited liability under the laws of Guernsey with registered number 43007)
LEI Number: 213800AF85VEZMDMF931
(The “Company”)

Receipt of Outline Proposals for the future of the Company

As previously announced, the shareholder who voted against the proposals to place the Company into voluntary liquidation at the adjourned EGM held in , had indicated he wished new proposals for the future strategy of the Company to be considered by the Board and, in due course, by shareholders.  The Directors had requested that he confirmed and elaborated on the proposals with further detail, including an expanded version of the proposed new investment policy.  

In response to the request, which was addressed to Worsley Associates LLP (“WALLP”), key elements of outline proposals have now been submitted to the Company by Blake Nixon that:

    --  the Company revert to a continuing operation;
    --  the Company's investment policy be modified so as to provide
        shareholders with an attractive level of absolute long-term return,
        principally through the capital appreciation and exit of undervalued
        securities, through active investment in undervalued smaller
        capitalisation British equities;
    --  Blake Nixon to be appointed forthwith as a director of the Company;
    --  the Curno property be taken off the market for the time being;
    --  the policy of returning capital to shareholders be discontinued;
    --  WALLP to be appointed as Investment Advisor to the Company, to be
        responsible for the implementation of investment decisions made by the
        Board and to assume executive management of the corporate structure and
        affairs, as replacement for AXA Investment Managers UK Limited
        (“AXAIM”), to the extent this role is not to be fulfilled by Blake Nixon
        personally;
    --  the Company's Board structure be reviewed in light of this new focus
        (and in particular the potential to reduce the number of directors on
        the board to three);
    --  an expense reduction exercise be undertaken to reduce the administration
        and general costs of the Company as an ongoing listed vehicle; and
    --  the best option for the asset management of the Curno property to be
        identified as replacement for AXAIM;

(collectively, the “Outline Proposals”).

Blake Nixon also confirmed that under the Outline Proposals:

    --  there will not be any capital returns from the proceeds of the eventual
        disposal of the Curno property;
    --  in due course, it will be desirable for the Company to raise further
        capital, at which stage views of investors will be canvassed on
        continued listing on the Premium Segment or other segment of the London
        Stock Exchange’s Main Market, dividend policy and the possibility of
        discount control, a continuation vote or other liquidity provisions;
    --  fees will be payable to Blake Nixon and WALLP in respect of investment
        management of the Company; and
    --  no contribution will be made by Blake Nixon directly to any transaction
        costs of the Company arising from the Outline Proposals, other than to
        the extent that he is already indirectly as a major shareholder bearing
        his percentage share of the Company’s costs.

The Board is considering the Outline Proposals and will seek to consult with the Company’s largest shareholders.  A further announcement will be made in due course.

In the meantime, the Board will continue to follow the current managed wind-down strategy until such time as shareholders approve any change. In order to support such a change, the Board will require a proposal which is sufficiently detailed to be shared with all shareholders for consideration and which the Board believes could be in the best interests of the Company and its members as a whole.

retail.axa-im.co.uk/axa-property-trust

All Enquiries:

Investment Manager 
AXA Investment Managers UK Limited
Broker Services
7 Newgate Street
London EC1A 7NX
United Kingdom

Broker
Stifel Nicolaus Europe Limited
150 Cheapside
London EC2V 6ET
United Kingdom
Tel: +44 (0)20 7710 7600

Company Secretary
Northern Trust International Fund
Administration Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 3QL
Channel Islands

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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