ABNY Albany It

TIDMABNY

RNS Number : 1309F

Albany Investment Trust PLC

12 June 2012

12 June 2012

Albany Investment Trust Plc

Proposed Reconstruction of the Company

The Board of Albany Investment Trust Plc (the "Company" or "Albany") announces that, following a review of available options to address the persistent discount to net asset value at which the Company's shares trade, the Board proposes to reconstruct the Company and offer shareholders the choice of (a) rolling over their investment, without triggering a charge to capital gains tax, into Troy Income & Growth Trust plc ("TIGT"), or (b) realising all or part of their investment for cash.

TIGT is a UK Growth & Income investment trust with approximately GBP73m of assets. Its principal objective is to provide shareholders with an attractive income yield and the prospect of income and capital growth through investing in a portfolio of predominantly UK equities. The investment objective is closely aligned with the Company's, enabling Shareholders to continue their investment exposure to quoted UK companies. TIGT's investment performance track record since Troy Asset Management became investment manager is as below:

 
                         Since Troy appointment   2 years   1 year   6 months 
----------------------  -----------------------  --------  -------  --------- 
 Share price Total 
  Return                         +70.5%           +27.4%    +10.6%    +8.5% 
----------------------  -----------------------  --------  -------  --------- 
 NAV Total Return                +53.6%           +21.9%    +5.4%     +4.8% 
----------------------  -----------------------  --------  -------  --------- 
 FTSE All Share Total 
  Return                         +39.1%           +11.4%    (2.0%)    +6.3% 
 

Note: Troy appointed 1 August 2009. Performance calculated to 30 April 2012

The benefits of the proposals for Albany shareholders are:

- Free choice as between continuing their investment exposure in a similar investment mandate or of realising their investment for cash;

- Those shareholders rolling over into TIGT will experience a broadly similar dividend yield and a lower TER than that currently offered by Albany;

- Due to the premium rating of TIGT's shares relative to its NAV, Albany shareholders rolling over should also benefit from a significant enhancement in the market value of their investment.

- Future discount volatility should be mitigated by the discount control mechanism which has been operated by TIGT since January 2010. This has ensured that the shares trade at or close to net asset value by the company issuing shares at a small premium or repurchasing shares at a small discount. Since 14 January 2012 the number of shares in issue has grown from 121 million to just under 150 million; and

- Low transaction costs in part due to significant commonality of investment holdings. The Board estimates that approximately 46% of the Company's portfolio mirrors that of TIGT. The Company estimates that the costs its shareholders will bear will total approximately 1.75% of current NAV

The proposals are expected to be effected by way of a section 110 scheme of reconstruction. Under the terms of the scheme, pursuant to which TIGT will make its shares available at a 1% premium to its NAV (calculated on a pre-cost and cum income basis), each of the Company and TIGT will bear its own transaction costs (net in each case of a contribution arrangement with TIGT's manager).

It is expected that further details of these proposals will be published as soon as practicable, likely in July.

Enquiries:

Manjit Wolstenholme - Chairman

via William Simmonds, J.P. Morgan Cazenove - 020 7588 2828

This information is provided by RNS

The company news service from the London Stock Exchange

END

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