The Rutland trust has put forward reconstruction proposals as part of its proposed merger with the A...
The Rutland trust has put forward reconstruction proposals as part of its proposed merger with the August Equity trust.
New Star intends to bring the vehicles together as a single private equity trust, named New Star Private Equity, under Paul Craig.
Rutland's chairman Oliver Stocken said under the scheme shareholders will be able to either exchange their existing holding for shares in the New Star trust or receive cash at net asset value, which will be distributed following liquidation.
"The trust will transfer certain of its assets to the New Star vehicle in exchange for shares, which will be issued directly to those shareholders who do not elect to receive cash," Stocken said. "The remaining assets will be realised and the proceeds available for distribution to shareholders who have elected to receive cash."
The Rutland trust invests £100m of its assets, around 48%, in the Rutland fund, a private equity vehicle that invests in businesses facing commercial or financial challenges where active management involvement can enhance value and cash returns over the medium term.
Over the year to the end of December, the trust's consolidated net asset value per share was 66.2p, up from 62.2p a year previously.
In terms of investment portfolio, Stocken said investments held through the Rutland fund included unlisted firms Wolstenholme and Notemachine.