GLI Finance announces tender offer for ZDP shares

(Sharecast News) - GLI Finance said on Tuesday that, as part of the zero-dividend preference (ZDP) share continuation proposals approved by shareholders in November, it intended to make a cash tender offer for a proportion of its redeemable ZDP shares.
The London-listed firm proposed to implement the tender offer for up to 25 per cent of the issued ZDP shares, excluding ZDP shares held in treasury.

It said the making of the tender offer required the approval of ordinary shareholders at an extraordinary general meeting, to be held at its registered office in Guernsey on 6 March.

"Since the extension of the life of the company's ZDP Shares to 5 December 2020, the company has continued its process of selling down its loan exposure to raise cash, with the intention of using this cash to fund and develop the group's business in the interests of shareholders as a whole but also, in the shorter term, to effect the tender offer of ZDP shares and to satisfy the final capital entitlement of the ZDP shareholders," the board explained in its statement.

It said the offer was being made at a price of 133.3p per ZDP share, which was equal to the accrued capital entitlement per ZDP share as at 6 March - the expected date of completion.

The aggregate tender price, assuming that the full entitlement of ZDP shares is tendered, would be around ?4.08m.

"The tender offer is being made for the benefit of both ordinary shareholders, who will benefit from the reduced overall capital entitlement of the ZDP shares as a result of repurchasing 25% of the ZDP shares sooner than their maturity date, and ZDP shareholders, who may elect to realise some of their investment at this time if they wish to do so."