El Oro Ltd - Update on Proposals
The Company announced on 30 November 2018 that it had agreed heads of terms with the board of JPME for JPME to provide a "rollover" option for the Company's members ("Members"). This proposal offers a choice to the Members of a tax and cost efficient rollover into a larger investment company with access to greater investment resource and/or realising their holding for cash. JPME provides investors access to a number of different investment strategies, including one focussed on UK equity income, through a multi-share class structure and the board of the Company ("Board") believe this will appeal to Members.
The Board is pleased to update Members that discussions with JPME are progressing and it is expected that a circular containing full details of the proposed transaction, including the terms of the proposed scheme of reconstruction (the "Scheme") and a notice convening the Company's extraordinary general meeting to approve the Company's voluntary winding-up and the implementation of the Scheme will be posted to Members by the end of May. The extraordinary general meeting is expected to be held before the end of June with the Scheme becoming effective shortly thereafter.
Certain Shareholders (being members of the Parish family and connected persons) which, together, represent 55.5 per cent. of the Company's voting share capital, have undertaken to vote in favour of the resolutions to be proposed at the extraordinary general meeting.
The Company announced on 24 April 2019 that cash held at 31 March 2019 was £27.9 million and the Company continues to make further progress in realising its investments in order to facilitate the proposed transaction.