Acquisition of securities by Octopus Investments Nominees Limited
Octopus AIM VCT plc
Acquisition of securities by Octopus Investments Nominees Limited
Octopus AIM VCT plc (‘the Company’) announces that Octopus Investments Nominees Limited (‘OINL’), part of the Octopus Group, has acquired (the ‘Share Acquisition’) 2,657 ordinary shares of 1p each in the capital of the Company (‘Shares’). The Share Acquisition relates to a rebate (the ‘Rebate’) of Octopus Investments Limited’s (‘OIL’) annual management charge to the Company in respect of members of the Octopus group who hold Shares (the ‘Octopus Shareholders’). On account of an administrative issue in the amount of the Rebate, the Octopus Shareholders received an additional 2,657 Shares, which it is now proposed will be transferred from the Octopus Shareholders to OINL for nil consideration.
Where OINL takes on the risk or benefit of movements in the Company’s net asset value (‘NAV’), such as in this instance, OINL will always take on any loss with a downward movement to the price at which the shares were taken on. Where there is a gain, and given the financial risk taken on by OINL in taking on these shares, OINL will also take any profit, however due to costs, OINL is unlikely to make an overall gain when selling shares back to the Company at the next buyback, from any upward movement in NAV per share, especially where the number of shares is smaller.
Subject to available distributable reserves and cash, and regulations, the Company proposes to purchase, for cancellation, the above Shares from OINL under its share buy back policy, as part of the next buy back expected to be in April 2023, at a price reflecting a discount of up to 5 per cent of the then latest published net asset value per Share, in accordance with the terms of its stated buy back policy.
OINL is a related party of the Company under Listing Rule 15.5.5R as it is within OIL’s group, OIL being the Company’s investment manager.
These arrangements constitute a smaller related party transaction under Listing Rule 11.1.10R.
For further information please contact:
Rachel Peat
Octopus Company Secretarial Services Limited
Tel: +44 (0)80 0316 2067
LEI: 213800C5JHJUQLAFP619
