Foresight Infra shares tender offer

[UncleEbenezer]

Foresight VCT's annual report[1] contains the following re: the Infrastructure share class:

Outlook

The Board is conscious of the intention stated in the original Infrastructure Shares fund prospectus to offer Shareholders the opportunity to exit their investment after the end of the initial five year holding period and is writing to Infrastructure Shareholders regarding this intent.

With a track record that's a pale shadow of Foresight Solar, exit from these Infra shares seems a no-brainer, and I look forward to it. But my shares are in a nominee account, so I won't get the letter. Anyone receiving a letter about a tender offer, a heads-up will be much-appreciated.

[1] http://www.investegate.co.uk/article.as ... 72247H8241

[Karellan]

I tend to agree about the exit. I get jittery every time something unusual is reported in the reports from them. I will soon be out of Solar and ironically its the only one I had much faith in and that did OK. I dont have much faith in the management group as by now , I keep expecting some horror or disaster or incentive scheme which I have to pay for. I have too many VCTs and losing the weaker bretheren is no bad thing. Its just a shame that they dont do the same for the remaining VCTs which I hold.

[UncleEbenezer]

RNS at http://www.investegate.co.uk/article.as ... 42303H0382 : they've sent out the letter.

Anyone have it yet? Does it say anything non-obvious? Does it look like the same process as the Foresight Solar exercise was?

[bnmlp]

Here it its: http://www.foresightgroup.eu/user_uploads/f1%20infrastructure%20letter%204pp.pdf

[UncleEbenezer]

Here it its: http://www.foresightgroup.eu/user_uploads/f1%20infrastructure%20letter%204pp.pdf

That one's interesting: it seems the prospective options are cash or conversion to Ordinaries. The latter presumably implies a merger of whatever Infra assets remain after raising the cash portion. Or even the entire Infra portfolio, subject to arms-length valuation. That could leave us a VCT with a slightly Albionesque flavour.

There's no actual form with that letter. I've just had a reply from my nominees (H-L Vantage) that they are unclear on the need to do anything right now. Was there a reply form with the paper version of that letter?

[Kidman]

the prospective options are cash or conversion to Ordinaries

why would one want to convert into ordinaries? Surely it would be better to take the cash and then subscribe for new ordinaries in due course to take advantage of tax relief. Of course it may be some time before an offer for subscription but then one has the option to subscribe for any VCT and not just Foresight.

Another option would be for the infrastructure shares to pay out dividends as they sell assets and Foresight could offer a DRIS to re-invest such dividends into ordinary shares. I recall this was an option for the Foresight 4 C 25p dividend.

[Shavtedagin]

I guess this does follow what was set out when first launched but it does smack of Foresight again buying the assets for their own gain with not much of an option for the Infrastructure shareholders ( remember Core and Octopus). It took years to be able to exit Foresight 1, don't think I'll be converting mine. Take the cash..... Roll on the F3/F4 merger and the final exit from Foresight group.

[JT1001]

In answer to your question UncleE there was a reply form with the letter when it was sent to shareholders , I suspect there is little to do if it is nominee form although I guess you could send a letter to foresight stating your case and your preferred option.
At the moment it is much like a poll shareholders to see what best to progress with , if there is little appetite for the conversion to Ords then I suspect the Infra class will simply be wound up.
I cannot see why anyone would convert to Ords so I do expect this to go into wind up and I would imagine the assets will be sold to another foresight fund so lets hope they at least get some sensible valuations for it.

[UncleEbenezer]

Thanks for that reply.

For the record, the URL quoted earlier in this thread is no longer valid. It's now findable from Foresight's regular pages, and is at http://www.foresightgroup.eu/media/1312 ... er-4pp.pdf . This one includes the reply form.

[Kidman]

I cannot see why anyone would convert to Ords

Nor can I, but I suspect many will take this option because it will be the default option, it will be recommnded by Foresight, it will be recommended by the Board, it is the easiest option, they don't understand that they could re-invest and get tax relief, their shares were bought by an adviser who takes the easy option etc.

[Kidman]

The Board of Foresight Solar & Infrastructure VCT is pleased to announce the updated results of the Tender Offer, including additional forms which were accepted at the discretion of the Board. The results are therefore as follows:
Number of acceptances 417
Number of Shares held 10,570,589
% of Issued Share Capital 27.60

The Net Asset Value per Ordinary Share has been finalised and independently reviewed and the net amount to be paid to investors will be 100.19p per Ordinary Share.

http://www.londonstockexchange.com/exch ... 28762.html

[UncleEbenezer]

I cannot see why anyone would convert to Ords

Nor can I, but I suspect many will take this option because it will be the default option

Actually the letter tells us the opposite: the default is the cash. I guess that means they're confident of finding a buyer, which is probably fair given the demand for infrastructure assets in the market.

The Board of Foresight Solar & Infrastructure VCT

Nice result, but you're in the wrong thread. To sell the Infra shares for a capital gain (or to find them as an attractive investment to continue to hold) would be quite a miracle.

Note, we're at the top end of the range anticipated in the letter to shareholders about this:

We anticipate shares will be acquired by the Company at a price in the range of £0.95 to £1.01 per share.

[Kidman]

Nice result, but you're in the wrong thread.

UncleE, many thanks for pointing out that I'm muddling my FTVI and FTSV. If they are both doing tenders then perhaps I have more excuse than just the word 'infrastructure' being common. Apologies to anyone who I confused.