British International Investment13 Dec 2023 14:06
I noticed this paragraph in the outlook of the FY results...........can anyone explain this in more detail and if it should be a concern for shareholders? I note the board's stance but that doesn't mean much
16 September 2024 will be the eighth anniversary of British International Investment plc's (BII) investment in the Company. After this date BII's conversion rights on their convertible redeemable preference shareholding ("Preference Shares") will increase materially, from currently one-for-one new ordinary share, to one for 3.0833 (recurring) new ordinary shares. BII is the Company's largest ordinary shareholder and also holds all Preference Shares. The Company has the right to redeem all or part of the Preference Shares at the redemption price, which would give BII a 12% compounded annual return on their investment, subject to a minimum of USD 0.77 per Preference Share (less dividends received). However, the likelihood of such a repayment by the Company in this new financial year, or in the medium term, is currently considered by the Board to be extremely unlikely.