360 Capital Group has announced an increase to its special payment to Australian Enhanced Income Fund’s unitholders from $0.12 to $0.15 as the company is attempting to call a unitholder meeting to remove the current responsible entity (RE) from Elstree Investment Management to 360 Capital FM Limited, the firm said in the announcement made to the Australian Securities Exchange (ASX).
On 22 July, the firm signalled its intention to buy the RE’s management rights to the fund, by making an offer of $0.12 per unit to all unitholders as a special payment upon 360 Capital FM being appointed as RE, subject to certain conditions.
The firm also indicated that such a payment would be paid from 360 Capital and not the fund.
However, the RE said that “a sale of the fund shell for $500,000 may result in ana additional distribution to unitholders of $0.15 per unit in excess of the NAV (net asset value)”.
Following this, 360 Capital increased its special payment to all unitholders to $0.15 per unit. According to the fund’s chair, Campbell Dawson, the increased payment would have “the ability to redeem at NAV”.
“Now that unitholders have the ability to redeem at NAV, we believe that we have fulfilled our fiduciary duty and, at the current time, have no duty, or inclination, to engage,” he said in a response to an increased offer.
360 Capital, who is also the largest unitholder in the fund, said: “We advise unitholders to do nothing until time as they have received the notice of meeting from 360 Capital setting out details of the proposed change of responsible entity and the benefits to unitholders”.