The £165m US Solar fund has survived a continuation vote, despite a significant number of shareholders voting to discontinue the trust.
At its AGM yesterday (21 May), 35.4% of votes were cast in favour of discontinuing the trust. Meanwhile, 35% voted against the re-election of Gill Nott as a director.
The trust’s board said that they will engage with dissenting shareholders following the vote.
Shareholders also overwhelmingly backed the fixed price tender offer announced by the trust’s board last month.
The offer comes at $0.764p per share based on its 31 December 2023 net asset value, and aims to return capital to shareholders.
Last month, the board also said it was considering refinancing via long-dated US private debt in a bid to improve both its cash dividend coverage and its investment performance.
In a stock exchange announcement, the trust said: “In the view of the board and investment manager, the plans set out last month regarding the tender offer, interim dividend policy and refinancing plans, reflect the best approach to deliver maximum value for all shareholders. Wide-ranging support from shareholders for the company’s strategy has been expressed.”
Meanwhile, board member Rachael Nutter, who did not stand for re-election, has stood down with immediate effect.
The trust currently trades at a 36% discount, according to the Association of Investment Companies.
