Axion European Financial Debt (AXI)

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the Board has carefully considered the future of the Company and its business, taking into account feedback from Shareholders. Consequently, the Board is now putting forward proposals for the liquidation of the Company including options for Shareholders to roll over their investment. These proposals include the opportunity for Rollover Eligible Shareholders to receive shares in Axiom Obligataire, a Compartment of an open-ended fund managed by Axiom with a substantially similar investment policy to the Company. The Board believes this will provide continuity for Rollover Eligible Shareholders who roll over their investment in the Company, while mitigating the issues in relation to which Shareholders have expressed their frustration. There will also be an option for a cash exit.

The Circular contains a notice convening an extraordinary general meeting (the "EGM") of the Company at which approval will be sought from shareholders for the proposals. The EGM is to be convened for 10.00 a.m. on 29 August 2023 and will be held at 1st Floor, Royal Chambers, St Julian's Avenue, St Peter Port, Guernsey GY1 3JX.

https://www.londonstockexchange.com/new ... m/16065636

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Anyone voting on this?

[88V8]

Anyone voting on this?

Thanks for the reminder, I was going to today, but the ii Voting Mailbox won't load.

As an income investor I have no interest in being swapped to Axiom Obligataire which seems to be rather a mediocre accumulation-only fund, so if allowed I shall vote against both the swap and the wind-up.

Now I think of it, I also have a holding at HL, suppose I could go over there and vote.

V8

[88V8]

Now I think of it, I also have a holding at HL, suppose I could go over there and vote.

Which I have now done.

V8

[Euro17]

Reading from the document posted, I think that most investors will be forced to take the cash option anyway :

'Investors must have a securities account with CACEIS Bank, Luxembourg Branch in respect of which the relevant know-your-client requirements of CACEIS Bank, Luxembourg Branch have been satisfied in order to hold shares in Axiom Obligataire and the Rollover Options are therefore available only to Rollover Eligible Shareholders.'

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iWeb have informed me that I have to transfer my AXI shares if I don't want cash

Under the terms of the Scheme of Reconstruction (the Scheme), shareholders will receive 1 New Axiom Obligataire (AXOB Fund) shares for every 1,000 Axiom shares held under the Rollover Option. Please be aware as we are unable to hold or trade the AXOB Fund through our Sharedealing service this option will not be available.

Shareholders are also being given the opportunity to elect for a cash payment under the Cash Exit Option, at a rate yet to be determined.

Please be aware that we will be required to elect for the Cash Exit option for all shareholders within our service.

Should you wish to receive the AXOB Fund, you will be required to transfer your Axiom shares to a broker who will be able to hold and trade the New AXOB Fund. If you wish transfer, please ensure you instruct your transfer asap. Your shares must be transferred before our deadline of 20th August 2023 or we will elect the cash exit option for you.

Reminds me of Lloyds and and their lesser offer for retail investors in coco bonds.

[Gan020]

AJ Bell have informed me that no decision is required on choosing options until the EGM vote has taken place which I think is incorrect and I have emailed AXI asking for clarification so I can go back to AJ Bell if required.

HL have informed me that the full options will be available soon.

Edit: It would not surprise me if in the end all the brokers end up in the same place as Iweb.

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I've written to Axiom (contact@axiom-ai.com), asking them to reconsider winding up the fund, and that I'll be voting against the proposal.

[88V8]

I've written to Axiom (contact@axiom-ai.com), asking them to reconsider winding up the fund, and that I'll be voting against the proposal.

I hope you have a big stick....

It will be interesting when it's wound up to see how the NAV plays out. I'm suspicious of NAVs in what amounts to a smouldering fire sale, illiquid stuff, we'll see.

V8

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I've written to Axiom (contact@axiom-ai.com), asking them to reconsider winding up the fund, and that I'll be voting against the proposal.

I hope you have a big stick....

It will be interesting when it's wound up to see how the NAV plays out. I'm suspicious of NAVs in what amounts to a smouldering fire sale, illiquid stuff, we'll see.

V8

Yes, I've been wondering whether to sell into the market rather than wait, but the price offered by iWeb 85.25 was not tempting.

[Gan020]

I've written to Axiom (contact@axiom-ai.com), asking them to reconsider winding up the fund, and that I'll be voting against the proposal.

I hope you have a big stick....

It will be interesting when it's wound up to see how the NAV plays out. I'm suspicious of NAVs in what amounts to a smouldering fire sale, illiquid stuff, we'll see.

V8

I think the NAV will turn out ok. AXI have spent the last year selling off the really illiquid stuff in order to smooth the transition.

[88V8]

Anyone voting on this?

Thanks for the reminder, I was going to today, but the ii Voting Mailbox won't load.

Well it loaded today and I have voted against.

In the Corp Actions there is the option of receiving cash, or shares in Axiom Oblig with no indication that the latter would present any sort of problem. One has to plough through the Scheme document to pick the bones, or of course read the Euro17 post above.
The record date is 24 August.

I opted for Cash.

V8

[Euro17]

I too have my shares held through ii and I have voted for the cash. Interesting to note that the default option is to receive Axiom Obligataire shares, which would go counter to my previous post that I would probably be ineligible.

[kempiejon]

Just had the notification from Hargreaves Lansdowne.

Under the scheme, certain eligible shareholders have the option to roll over their investment into new shares in the Axiom Obligataire Fund. We are unable to hold this fund on our platform so you will automatically receive a cash payment in place of your holding.


The cash payment will reflect the value obtained from the sale of the company’s assets attributed to those shareholders receiving cash, less the costs of selling these assets. Cash will be paid from 12 September 2023.

NAV is above current price but is that the likely value, I guess we can just sell now and redeploy with certainty.

[Gan020]

Just had the notification from Hargreaves Lansdowne.

Under the scheme, certain eligible shareholders have the option to roll over their investment into new shares in the Axiom Obligataire Fund. We are unable to hold this fund on our platform so you will automatically receive a cash payment in place of your holding.


The cash payment will reflect the value obtained from the sale of the company’s assets attributed to those shareholders receiving cash, less the costs of selling these assets. Cash will be paid from 12 September 2023.

NAV is above current price but is that the likely value, I guess we can just sell now and redeploy with certainty.

NAV is 92.25p
Current sell price being offered is 85.5p

AXI will surely have anticpated a number of retail holders exiting and have already got some element of cash available for that. In addition the portfolio is full of big name liquid investments so I would anticipate there will be little trouble selling within the spread.
It's hard to see the cash exit value being less than 90p and I would suggest 91p more likely. Perhaps a little more if you consider revenue is continuing to be generated by the underlying investments.

Regardless I see little point in selling in the market. Selling at 85.5p seems to be throwing away money when 90-91p seems more likely.


What's more annoying is HL's forcing shareholders to cash. AJ Bell and II are giving shareholders a choice. I continue to despair at HL at their attitude towards what they are and are not willing to let investors invest in.

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Just had the notification from Hargreaves Lansdowne.



NAV is above current price but is that the likely value, I guess we can just sell now and redeploy with certainty.

NAV is 92.25p
Current sell price being offered is 85.5p

AXI will surely have anticpated a number of retail holders exiting and have already got some element of cash available for that. In addition the portfolio is full of big name liquid investments so I would anticipate there will be little trouble selling within the spread.
It's hard to see the cash exit value being less than 90p and I would suggest 91p more likely. Perhaps a little more if you consider revenue is continuing to be generated by the underlying investments.

Regardless I see little point in selling in the market. Selling at 85.5p seems to be throwing away money when 90-91p seems more likely.


What's more annoying is HL's forcing shareholders to cash. AJ Bell and II are giving shareholders a choice. I continue to despair at HL at their attitude towards what they are and are not willing to let investors invest in.

Is it definitely a broker decision? Is Axiom happy for 'retail' investors to be holders in Axiom Obligataire Fund?

[kempiejon]

NAV is 92.25p
Current sell price being offered is 85.5p

AXI will surely have anticpated a number of retail holders exiting and have already got some element of cash available for that. In addition the portfolio is full of big name liquid investments so I would anticipate there will be little trouble selling within the spread.
It's hard to see the cash exit value being less than 90p and I would suggest 91p more likely. Perhaps a little more if you consider revenue is continuing to be generated by the underlying investments.

Regardless I see little point in selling in the market. Selling at 85.5p seems to be throwing away money when 90-91p seems more likely.

Thanks for the above Gan020, I needed to do a spot more research, having looked at time scales some larger holdings and NAV I@m minded to hold on. Although I can't know the exit value I take your comments and bit more of my own sniffing about and yes selling today for 85.5p rather than hanging on for 11 days for likely more does seem to be throwing my money away.

[Gan020]

NAV is 92.25p
Current sell price being offered is 85.5p

AXI will surely have anticpated a number of retail holders exiting and have already got some element of cash available for that. In addition the portfolio is full of big name liquid investments so I would anticipate there will be little trouble selling within the spread.
It's hard to see the cash exit value being less than 90p and I would suggest 91p more likely. Perhaps a little more if you consider revenue is continuing to be generated by the underlying investments.

Regardless I see little point in selling in the market. Selling at 85.5p seems to be throwing away money when 90-91p seems more likely.

Thanks for the above Gan020, I needed to do a spot more research, having looked at time scales some larger holdings and NAV I@m minded to hold on. Although I can't know the exit value I take your comments and bit more of my own sniffing about and yes selling today for 85.5p rather than hanging on for 11 days for likely more does seem to be throwing my money away.

Just a reminder that if you stay in you can exit at your leisure at a time that suits you at NAV, so it seems likely that's the best option if it's available to you.

[kempiejon]

Just a reminder that if you stay in you can exit at your leisure at a time that suits you at NAV, so it seems likely that's the best option if it's available to you.

Do you mean stay in the Axiom Obligataire Fund? Not an option to wait for NAV as my account with HL says

Axiom Obligataire Fund. We are unable to hold this fund on our platform so you will automatically receive a cash payment in place of your holding.

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If 'retail' holders are being offered cash now, but others are being offered exit at NAV later, then I think this would be something for the FCA to look at.