Global Mining Investments Plans To Restructure As Trust, Delist

Global Mining Investments Ltd. (GMI.AU), whose investments are managed by BlackRock Inc. (BLK), Thursday said it aims to restructure itself as an unlisted investment trust in order to rid itself of the continuing discount between its share price and its net tangible assets.

The news buoyed the company's shares, which were up 14% to A$1.05 at 0319 GMT, outpacing the wider market's gains.

GMI said its board, after considering various alternatives, intends to put a proposal to shareholders to transfer the company's portfolio of assets to an investment trust called Global Mining Investments Trust, and in time delist GMI and wind the company up. Shareholders will be offered units in the trust, it said.

The company said its board has been concerned for some time by the performance of its shares.

"This discount has persisted despite consistent outperformance of GMI's investment portfolio relative to its benchmark and the various initiatives taken over the past four years to close the discount gap," it said in a statement to the Australian securities exchange.

BlackRock, currently GMI's investment manager, will be appointed as investment manager of the trust, it said.

GMI said its investors will be able to redeem their units in the trust after the restructuring at a value that will determined by reference to the net asset value of the trust, with the trust taxed as a company and its distributions treated as dividends.

The move will require approval from GMI's shareholders, as well as the stock exchange and regulators.

As of March, GMI's biggest investments were in Rio Tinto PLC (RIO), Glencore International PLC (GLEN.LN), BHP Billiton Ltd. (BHP) and Vale SA (VALE).

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]