15 Nov 2017 18:35
15 November 2017
LEI: 2138005C7REHURGWHW31
River and Mercantile Group PLC ("the Company")
River and Mercantile UK Micro Cap Investment Company Limited
River and Mercantile Group PLC ("the Company") announces that it has been informed by the Board of River and Mercantile UK Micro Cap Investment Company Limited ("RMMIC") that RMMIC intends to implement a partial compulsory redemption of shares in RMMIC in accordance with the prospectus published at the time of RMMIC's IPO in November 2014. RMMIC intends to return approximately £15 million, less the costs of the redemption, to its shareholders at a price based on RMMIC's NAV per share at the close of business on 10 November 2017. Further detail of the RMMIC partial compulsory redemption is available in the RMMIC RNS of 15 November 2017 (RNS Number 6108W).
The Company's subsidiary River and Mercantile Asset Management LLP ("RAMAM") is the appointed investment manager of RMMIC. RAMAM is entitled to receive a performance fee based on the amount by which RMMIC's investment portfolio outperforms the total return of its benchmark when RMMIC implements a compulsory redemption of shares. Accordingly, as a result of the substantial outperformance delivered for shareholders of RMMIC, RAMAM is due to receive a performance fee of approximately £1 million in December 2017, following the compulsory redemption of the RMMIC shares.
James Barham, Chief Executive of RAMAM said;
"It is rewarding to see the redemption process operating efficiently and in line with our expectations at the time RMMIC was formed. This innovative structure ensures that we retain the ability to invest in this exciting area of the market without the inherent liquidity issues that would be associated with a continued unconstrained growth in assets. The strong returns generated are a testament to our PVT investment process".
This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
Sally Buckmaster
Company Secretary
River and Mercantile Group PLC
For further information please contact:
River and Mercantile Group PLC +44 (0)20 3327 5100