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Have put a limit order in to sell at £4.40 just in case it reaches there. My feeling is it will likely top out at more like £4.30 but who knows. Good luck all.
A few years ago I was in a similar position with Aberforth, I cashed enough for CG limits and rolled the remainder. Those remaining shares fell instantly to ~20% discount and are still ~-15%. The price of the new shares was conveniently high at rollover. The loss could be more than you CG bill.
If you roll in then there won’t be any CGT, but if you cash out and then buy in there will be I imagine (obviously not an issue if held in ISA/SIPP). As Unicorn is open ended, you would roll over at NAV and I’m not sure there would be a discount? RNS says currently around 67% commonality between AIF and Unicorn, so we already have a high amount of assets that will just roll over into Unicorn at NAV without the need for any selling in the market by AIF. By the time of the liquidation, I’d expect the commonality figure to be much higher than that. Timing wise, reading the RNS again, it says rollover/ liquidation is “expected to be in October/November 2021”.
The NAV of Unicorn will fluctuate also, if it is used for valuation then those accepting the 'rollover' may find the their new shares at an immediate discount. Taking cash and buy in later may be the preferred option.
I note some selling now as the discount has narrowed, a smaller discount could more easily be lost in a market slump.
Timing should be the date in the original prospectus, their valuation date though is something else.
Good RNS for holders. I’ll be voting for discontinuation.
Unicorn UK Income Fund looks ok to me as a roll over option.
The option “for a cash exit close to NAV” is great. Anyone have any view on what “close to NAV” means?
Latest NAV from Tuesday is 450.33p.
I imagine we have to subtract the following from the NAV:
1. Costs of the liquidation. Unicorn are to make a “cost contribution” of between £50k and £100k (the amount depends on how many of us roll over to their UK income fund), which I guess gives some idea of the scale of the costs we are talking about. But I don’t really know. Anyone have any ideas?
2. Costs of selling any assets that won’t migrate to Unicorn. Given that the NAV is calculated based on the BID price and that AIF’s positions are pretty small, surely these will be relatively low?
Assuming the NAV sticks at around 450p until the liquidation, would it be fair to assume liquidation at around 440p?
Timing wise, anyone have any idea how long it might take? The RNS doesn’t really give any meaningful clues.