18 Dec 2015 17:00
18 DECEMBER 2015
CHENAVARI CAPITAL SOLUTIONS LIMTED
RESULT OF EXTRAORDINARY GENERAL MEETING
Chenavari Capital Solutions Limited (the "Company") announces that at the extraordinary general meeting held today the resolution set out in the notice of meeting was duly passed by shareholders.
The passing of the resolution will permit the Company, during the period from 1 January 2016 to no later than 31 December 2016 (the "Extended Investment Period"), to continue to invest its cash balances from time to time and any further monies raised in accordance with its investment policy, to the extent that such cash is not required for working capital purposes or the payment of dividends in accordance with the Company's dividend policy.
Following the end of the Extended Investment Period, the Company will return to Shareholders any unencumbered cash and such cash balances as arise from time to time as a result, predominantly, of investments maturing in accordance with their terms or otherwise. Amounts required for working capital purposes (including, in particular, a cash reserve for meeting any required margin calls on derivative positions), for the payment of dividends in accordance with the Company's dividend policy and for settling transactions contractually agreed before 31 December 2016, will be excluded from such returns of cash to Shareholders. The Company will not be under any obligation to sell investments before they mature in order to fund returns of cash to Shareholders, but may do so to optimise returns.
The precise mechanism for any return of cash to Shareholders will depend upon the relevant factors prevailing at the time and will be at the discretion of the Board, but may include a combination of capital distributions, share repurchases and redemptions. The amount and frequency of such distributions will be at the Company's absolute discretion.
The Extended Investment Period will cease before 31 December 2016, with immediate effect, if the Company does not:
· declare and pay, by 29 February 2016, a dividend of at least two pence per Ordinary Share in respect of the three months to 31 December 2015; and
· declare and pay, by 31 May 2016, a dividend of at least two pence per Ordinary Share in respect of the three months to 31 March 2016.
During the Extended Investment Period, the Directors will seek to ensure that any issues of Shares for cash will not result in the portfolio attributable to the Ordinary Shares being less than 75% invested.
In accordance with the Disclosure Rules and Transparency Rules, a copy of the resolutions proposed and passed has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM and is also available on the Company's website at: http://www.chenavaricapitalsolutions.com/news/
Details of proxy voting on the resolution are as follows:
Number | Resolution | For | Discretionary | Against | Vote withheld |
1 | To approve the Extension Proposal | 88,541,106 | 0 | 9,697,824 | 0 |
Definitions
Capitalised terms used in this announcement bear the terms ascribed to them in the circular published by the Company on 24 November 2015. A copy of the Circular is available today at http://www.chenavaricapitalsolutions.com/news/
Enquiries
Kirstie McLaren
Chenavari Investment Managers
Email: Investor-relations@chenavari.com
Telephone: +44 20 7259 3600
Robert Peel
Dexion Capital plc
Telephone: +44 20 7832 0983
Neither the contents of the Chenavari Capital Solutions Limited website nor the contents of any website accessible from hyperlinks on the Chenavari Capital Solutions Limited website (or any other website) is incorporated into, or forms part of, this announcement.