LONDON (Alliance News) - Martin Currie Asia Unconstrained Trust PLC on Tuesday said it will propose a scheme which would result in voluntary liquidation of the company and a rollover of assets.
Shares in Martin Currie AUT were up 9.7% at 406.80 pence in afternoon trade.
The investor has assessed the commercial viability of the company and said it is not expecting any significant improvement to the rating of its shares, which "have continually traded at a steep discount to their underlying net asset value".
"The discount, and the relative size of the company, along with poor liquidity in its shares, continue to present structural hurdles that deter potential new buyers of the company's shares," said Martin Currie AUT.
The rollover scheme, if it goes ahead, would give Martin Currie AUT shareholders the default option of rolling all or some of their holding into shares issued by an open ended investment company.
This rollover company would be managed by Martin Currie Investment Management Ltd and would be under the Legg Mason Investment Funds ICVC umbrella.
Martin Currie AUT voted for continuation in July 2018 and the company said its ongoing feedback suggests shareholder endorsement for its investment strategy, prompting the rollover scheme recommendation which "should provide enhanced liquidity".