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19 May 2021
Invesco Enhanced Income Limited
Results of Scheme
Further to the publication of the circular dated 22 April 2021 (the “Circular”) relating to the proposed merger with City Merchants High Yield Trust Limited (“CMHY”) to be effected by way of a shareholder approved contractual scheme of reconstruction (the “Scheme”), the Board of Invesco Enhanced Income Limited (“IPE” or the “Company”) is pleased to announce that the Company will transfer approximately £130.2 million of net assets to CMHY under the terms of the Scheme in consideration resulting in the issue of 66,836,392 New CMHY Shares. The number of New CMHY Shares to be issued was calculated based on a Company FAV per Share of 74.6470 pence and a CMHY FAV per Share of 194.8580 pence, producing a conversion ratio of approximately 0.383084, each calculated in accordance with the Scheme. As set out in the Circular, the New CMHY Shares which would otherwise be issued to Restricted Shareholders pursuant to the Scheme will instead be issued to the Liquidators as nominees on behalf of such Restricted Shareholders who will arrange for such shares to be sold promptly by a market maker. The proceeds of such sales will be paid to relevant Restricted Shareholders entitled to them within ten Business Days of the date of sale, save that entitlements of less than £5.00 per Restricted Shareholder will be retained by CMHY for its own account.
Applications have been made for the New CMHY Shares to be admitted to the premium segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange (together, “Admission”). It is expected that Admission will take place at 8.00am on 20 May 2020.
Applications have also been made for the existing Ordinary Shares in the Company to be suspended and cancelled from the premium segment of the Official List of the Financial Conduct Authority and trading on the main market for listed securities of the London Stock Exchange (together, “Cancellation”). It is expected that Cancellation will take place at 8.00am on 20 May 2020.
No value shall be attributable to Ordinary Shares held in treasury by the Company. Fractions of New CMHY Shares will not be issued under the Scheme and entitlements to such New CMHY Shares will be rounded down to the nearest whole number. Any assets representing a fraction of the entitlements of holders of Ordinary Shares and whose holding of New CMHY Shares is rounded down shall be retained by CMHY and represent an accretion to its assets.
Capitalised terms used but not defined in this announcement will have the same meaning as set out in the Circular unless the context otherwise requires.
For further information please contact:
JTC Fund Solutions (Jersey) Limited +44 (0) 15 3470 0000
Invesco Asset Management Limited +44 (0) 20 3753 1000
J.P. Morgan Cazenove (Financial Advisor to IPE)+44 (0) 20 7742 4000
The person responsible for arranging for the release of this announcement on behalf of IPE is Hilary Jones of JTC Fund Solutions (Jersey) Limited.