The GCP Asset Backed Income board has proposed a wind down to shareholders following the outcome of a strategic review.
In a stock exchange announcement this morning (14 March), the £289m trust’s board said as part of the review process, a majority of investors who expressed their opinion indicated a preference for either an orderly realisation or a potential sale.
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The board added that though some favoured continuation, the likely scale and take-up of returns of capital that would be necessary to provide an exit for shareholders would be substantial and as a result, they believe the trust would no longer be of a ‘viable size’ to provide sufficient liquidity and scale.
Alex Ohlsson, chair of GABI, commented: “The board thanks shareholders for the constructive feedback provided as part of the shareholder engagement process. The extensive feedback has been invaluable in informing the board’s decision-making process and in formulating proposals for an orderly wind-down of the company.”
Shareholders will formally vote for continuation on 15 May.
The board added that, if approved, the wind down will not be finalised in the immediate future as the board explores potential options for maximising value, including a potential sale.
Investment manager Gravis Capital Management will be retained to help manage the potential wind-down, the board added.
The trust currently trades at a 26.8% discount, according to the Association of Investment Companies website.
