ABTRUST Scotland, an investment trust specialising in smaller
companies based mainly in the Grampian region, is to double its capital
in a #13.1m rights issue.
Much of the funds, fully underwritten by Cazenove, will go toward
ensuring that the trust will not feel forced to sell two of its major
investments on their Stock Exchange flotation.
GRT, the Aberdeen-based bus operator in which Abtrust Scotland has a
5% stake, and Caledonian Trust (3.3%), are the two current stars of the
trust's portfolio and their imminent listings should generate handsome
profits.
''Normally a small trust like ourselves would be under pressure to
sell immediately and we felt that our shareholders could best be served
if that were not the case,'' explained Abtrust's Hugh Little.
''The rights issue will double the fund in size to about #27m which is
highly satisfactory given that the company was launched as a #3m fund
back in 1987,'' he added.
The new money will also allow the trust to get involved in deals of up
to #1m compared with the effective #500,000 limit to date.
Terms of the issue are effectively a one-for-one share at 40p with
warrants on the new shares on a one-for-five basis. In addition,
existing shareholders will receive a bonus warrants issue on a
one-for-five basis. The share price is currently 38p and net asset value
was 41p at the end of last month.
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