ALR.L Regulatory News (ALR)

19 May 2006 10:20

Merchants Trust PLC19 May 2006 The Merchants Trust PLC (the "Company") Issue of Shares 19 May 2006 The Board of the Company announces its participation in a scheme ofreconstruction of Allianz Dresdner Income Growth Investment Trust plc ("ADIGIT"), a split capital investment trust with net assets of £67.6 million, undersection 110 of the Insolvency Act 1988 (the "Scheme") that was announced byADIGIT today. Under the Scheme, all shareholders in ADIGIT will be given the opportunity toroll their investment into the Company or (in the case of zero dividendpreference shareholders only) the Sterling Total Return Fund, a sub-fund ofAllianz UK & European Investment Funds, a UK authorised open-ended investmentcompany. ADIGIT shareholders can also elect to receive cash in respect of all orsome of their investment. The default option under the Scheme will be cash. The issue price of the new ordinary shares to be issued by the Company pursuantto the Scheme (the "New Shares") will be calculated as at close of business on27 June 2006 (the "Calculation Date") and, in order to offset the Company'scosts of participation in the Scheme, will be calculated by applying a premiumof 0.6 per cent to the net asset value per share at that time (with debt valuedat market value and including accrued but undeclared net income). The maximumnumber of New Shares which may be issued will not exceed 9.99 per cent of theissued share capital of the Company as at close of business on the CalculationDate. The New Shares will be issued under the existing shareholder authoritiesand there is no requirement to publish a prospectus. The Company will onlyreceive cash or cash equivalent assets from ADIGIT under the Scheme. It is expected that the Scheme will become effective on 29 June 2006 and thatthe New Shares will be admitted to the UKLA's Official List and to trading onthe main market of the London Stock Exchange on 30 June 2006. EnquiriesSimon White 020 7065 1539RCM (UK) Limited This information is provided by RNS The company news service from the London Stock Exchange