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LONDON (Alliance News) - Templeton Emerging Markets Investment Trust said Friday it will launch a five-year performance-related conditional tender offer following shareholder feedback.
Under the proposal, the company will undertake a tender offer for up to 25% of its outstanding share capital if its net asset value total return fails to exceed the total return of benchmark MSCI Emerging Markets Index over the five-year period to March 31, 2024.
There will be no tender offer, however, if the company's net asset value total return continues to exceed the company's benchmark total return over the five-year period.
The investment trust said it will continue to exercise its right to buy back shares when it is in shareholders' interests and with the aim of controlling volatility in the discount.
The tender offer proposal is subject to shareholder approval.
The company's largest shareholder, City of London Investment Management, has provided an undertaking to vote in favour of the tender offer continuation resolution. City of London Investment owns 14% stake in the company.
Shares in Templeton Emerging Markets Investment Trust were up 0.3% at 784.00 pence each on Friday morning.