AVI
Japan Opportunity Trust plc (the "Company")
2024
Exit Opportunity
The Board of the
Company provides an update on the 2024 Exit Opportunity, as
set out in its Prospectus.
At the launch of the Company
in October 2018, the Prospectus published at that time stated
that the Directors may, at their discretion, offer a full or a
partial exit opportunity to Shareholders in October
2022 and every two years thereafter (the "Exit Opportunity").
The rationale behind including the Exit Opportunity in the
Prospectus was to ensure that if the original investment thesis did
not generate the expected returns, or if circumstances had changed
to make Japan unattractive, then Shareholders would be
offered the opportunity to exit at close to NAV if they
wish.
Although neither of the scenarios
above have materialised, and the Board and the Investment Manager
firmly believe that the opportunities are now even more attractive
than they were when the Company was launched in 2018, the Directors
consider that nonetheless Shareholders should be offered the
opportunity to exit at close to NAV on a regular basis.
Accordingly, the Company intends to
offer Shareholders the opportunity to tender all or part of their
shareholding in the Company (the "Tender Offer"), at a tender price
equal to a two percent discount to the prevailing net asset value
per share at the calculation date less any transaction costs
directly associated with realising assets to satisfy elections
under the Tender Offer. Other costs and expenses incurred in
relation to the Tender Offer, including professional advice, will
be borne by the Company. The Tender Offer will be subject to
approval by Shareholders at a general meeting of the Company. The
Company expects to publish a circular including further details on
the Tender Offer and convening the required general meeting in the
coming weeks.
The Directors
do not intend to participate in the Tender Offer and
highlight that Shareholders who wish to realise their shareholding
may be able to achieve a higher price on the stock market than is
expected to be offered under the 2024 Exit Opportunity.
Shareholders not wishing to realise their shareholding in the
Company should not take any action.
In light of the Board's keen focus
on corporate governance, the Board will in the future offer the
Exit Opportunity on an annual basis (rather than biennially), with
another Exit Opportunity being made available to Shareholders in
October 2025, and every twelve months thereafter.
The Board has an active discount
management policy, and monitors its discount/premium situation
closely, seeking to ensure that Shareholders are protected from the
downside of a widening discount while also taking advantage of any
premium at which the shares may trade to grow the Company. The
Board expects the proposed Tender Offer to enhance its existing
approach to discount management, providing a strong platform for
future growth of the Company.
Further announcements will be made
in due course.
14 October 2024
LEI: 894500IJ5QQD7FPT3J73