Antipodes seeks to exit LIC structure
The Antipodes Global Investment Company (APL) has entered into a scheme of arrangement to merge with the Antipodes Global Shares fund.
In a statement to the Australian Securities Exchange (ASX), the firm said it had considered the decision for the last two years as the LIC was trading at a discount to its net tangible assets (NTA).
To avoid taking this step, it had enhanced shareholder communication, made a conditional tender offer and had an on-market buyback program but the discount had persisted.
This was the latest in a series of listed investment companies looking to exit the structure following Monash Investors moving its Monash Investors moving its Absolute Investment Company and Magellan moving its High Conviction
Shareholders would be able to exchange their LIC shares for one in the Global Share fund which was an open-ended active exchange traded fund (ETF). The two funds were both global equities vehicles and had similar investment objectives.
The APL board said: “APL’s independent board committee unanimously considers the scheme to be in the best interests of APL shareholders and considers the proposal to be a straightforward and very low cost means of enabling shareholders to exit APL at close to NTA and to access the manager’s investment strategy via an ETF”.
It was expected to be implemented in early to mid-December 2021.
AUTHOR
Laura Dew
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