Sdcl Ef. Inc Tr Company Research (SEIT)

SDCL Efficiency Income Trust’s (SEIT’s) board has announced that it intends to pursue a managed wind-down of its investment portfolio after recent shareholder consultation made clear there was insufficient support for the manager-backed Strategic Proposal. This is a significant outcome, because the board and the manager initially concluded the Strategic Proposal represented the most credible route to creating value materially in excess of the current share price over the medium to long term. Some shareholder feedback in the weeks prior to the announcement indicated a preference for liquidity, given the discount the shares continue to trade at (c 50% to NAV), rather than backing a more complex corporate transformation. The board concluded there was insufficient support to pass the special resolution required to implement the proposal. In that context, the move to a managed wind-down reflects shareholder preference, rather than a change in the board’s view that the alternative proposal had strategic merit.