General Securities Investments Proposes Restructuring
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Voluntary Liquidation to unlock value for shareholders
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Shareholders To Vote On Measure
SINGAPORE, SEPT. 21 -- The Board of Directors of General Securities Investments Limited (GSI), a closed-end investment company traded on the Singapore Exchange, said today it is proposing a restructuring of the company.
Trading in GSI shares on the Singapore Exchange was suspended today in anticipation of the announcement, and DBS Bank has been appointed Restructuring Manager.
Eric Ang, on behalf of the Restructuring Manager, said the move is aimed at unlocking value for shareholders.
"This planned restructuring is in response to the fact that the GSI share price, like that of most closed-end funds, has persistently been trading at a significant discount to net asset value (NAV). For the last five years, GSI shares have traded at an average discount of about 28 percent. On Sept. 20, the closing price of GSI shares was S$1.01 compared to a NAV per share of S$1.62, a discount or value gap of approximately 37 percent," Ang said.
The restructuring involves a voluntary liquidation of GSI. Upon the liquidation, GSI shareholders may elect by a majority to receive either cash or units in a new open-ended unit trust, thereby removing the effects associated with closed-end fund companies.
The plan to liquidate GSI and the method of distribution will be put to a vote by shareholders at an Extraordinary General Meeting (EGM) to be held in due course. Full details of the restructuring, including the proposed new unit trust, will be included in the circular to GSI shareholders. If approved, the restructuring is expected to be completed by the end of the year or early in 2001.
DBS Asset Management is currently the fund manager for GSI, and will manage the proposed unit trust if approved.
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Issued on behalf of General Securities Investments Limited
For more information, please contact:
Julie Yeo
Vice President, Corporate Relations
DBS Singapore
Tel: +65 6321-5447 (DID)
Mobile: +65 9673-4433
Fax: +65 6222-4478
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