Downing Strategic Micro-Cap declares special dividends after activist investor blocks cash exit

Milkwood Capital has built a 28% stake

Valeria Martinez
clock • 2 min read

The Downing Strategic Micro-Cap (DSM) trust has declared two special dividends for up to £17.6m, after an activist investor blocked its B share redemption proposal at a general meeting on Wednesday (3 April).

In a stock exchange notice, the £29m trust said it would not be able to implement the B share scheme to return cash to shareholders, as only 56.65% of the votes cast were in favour. The special resolutions required at least 75% of votes to be cast in favour to pass.  A "new investor" in the trust Milkwood Capital, which is the main opponent to the managed wind-down, was also the major opposition to this measure. Other than shares owned by Milkwood Capital, less than 0.28% of votes were cast against the resolution. Chair Hugh Aldous said the B share scheme vote was put forward after sh...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week