Cameron Investors Trust Plc - Circ re Reconstruction and Voluntary Wind Up

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA.

The information communicated in this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.  Upon the publication of this announcement, this information is considered to be in the public domain.

CAMERON INVESTORS TRUST PLC

PUBLICATION OF CIRCULAR

The Cameron Investors Trust plc (the "Company") has today issued a circular (the "Circular") to its shareholders (the "Shareholders") in connection with the recommended proposals for the winding up and reconstruction of the Company (the "Proposals").

Introduction

As stated in the prospectus published by the Company on its admission to the Official List, the Board has been considering options to increase the size of the Company, possibly through a merger with another investment trust.

Following careful consideration of the options available to the Company the Board is pleased to announce that it has agreed in principle to merge the Company's assets with Troy Income & Growth Trust plc ("TIGT") under the Proposals.

The Proposals

Under the Proposals, all Shareholders will roll over their entire investment in the Company into shares in TIGT. TIGT is an investment trust which was launched in July 1988. Its investment objective is to provide shareholders with an attractive income yield and the prospect of income and capital growth by investing in a portfolio of predominantly UK equities. Its capital structure is the simplest possible for an investment trust, consisting only of ordinary shares.

In selecting TIGT as the most suitable rollover vehicle for the Shareholders, the Board paid particular regard to the following:

• TIGT's investment objective and policy are substantially the same as those of the Company and TIGT is managed by the same investment manager;
• Shareholders are expected to receive a similar dividend yield on the new TIGT shares;
• TIGT has a lower ongoing costs ratio than can be achieved by the Company in its current form;
• TIGT has a market capitalisation of over £247 million which will provide considerably improved liquidity for Shareholders; and
• TIGT operates a discount control mechanism which should reduce the risk that shares will trade at a material discount to their net asset value.

Final interim dividend

The Board intends that the Company will pay a final interim dividend of not less than 8 pence per share in respect of the period from 11 June 2019 to 24 October 2019 to Shareholders on the Company's register at close of business on 1 November 2019.

Costs of the Proposals

The costs of the Proposals which are to be borne by the Company (including irrecoverable VAT and stamp duty and/or stamp duty reserve tax which is payable on the transfer of the assets constituting the Rollover Pool from the Company to TIGT) are expected to be approximately £400,000. No costs will be incurred by the Company in terminating its investment management agreement with Troy Asset Management Limited.

Conditions of the Proposals

Implementation of the Proposals is subject to a number of conditions, including:

• the passing of the Resolutions at the General Meetings; and
• the FCA agreeing to admit the New Shares to the Official List and the London Stock Exchange agreeing to admit the New Shares to trading on its Main Market, subject only to allotment.

General Meetings

The implementation of the Proposals will require Shareholders to vote in favour of Resolutions to be proposed at the General Meetings of the Company which have been convened for 2.30 p.m. on 8 November 2019 and 11.30 a.m. on 18 November 2019. The notices convening the General Meetings, which set out in full the terms of the Resolutions which are to be proposed, are set out in the Circular. The General Meetings will be held at the offices of Dickson Minto W.S., Broadgate Tower, 20 Primrose Street, London EC2A 2EW.

General

Expressions used but not defined in this announcement have the meanings ascribed to them in the Circular. The Circular is available at www.cameroninvestors.co.uk and a copy has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.

Enquiries

PATAC Limited

Company Secretary

0131 538 1400

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