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EP Global Opportunities Trust plc
25 October 2021
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014. This announcement has been authorised for release by the Company's Board of Directors.
Change of Management Arrangements and Tender Offer
EP Global Opportunities Trust plc
Legal Entity Identifier: 2138005T5CT5ITZ7ZX58
Management arrangements
The Board of EP Global Opportunities Trust plc (the "Company") is pleased to announce that following a review of the strategic direction of the Company, as announced in the Half-Yearly Report for the period to 30 June 2021, it intends to change the Company’s management arrangements by becoming a self-managed investment trust. The Board will assume overall control over the Company’s investment policy and will have overall responsibility for the Company’s activities. It is proposed that the Company’s present portfolio manager, Dr Sandy Nairn, will be appointed as a Director and Dr Nairn will have responsibility for day-to-day investment management of the Company.
Proposed change in investment objective and policy
In connection with the changes in management arrangements, the Company intends to seek Financial Conduct Authority and shareholder approval to amend its investment objective and policy. The Company wishes to expand its investment objective of providing shareholders with an attractive real long-term total return by investing globally in undervalued securities by enabling investment also in other financial assets; and to amend the investment policy to permit investment in a diversified portfolio of equity and equity-linked securities (both listed and unquoted), investments in other investment companies and funds which provide exposure to a wide range of financial asset classes and to allocate a portion of portfolio assets to be managed by one or more specialist investment sub-advisors (the "New Investment Policy").
Heads of terms
The Company has entered into heads of terms ("HOT") with Franklin Templeton Investment Trust Management Limited and Dr Nairn in respect of the new management arrangements. The arrangements are subject to finalisation of full legal documentation. Under the HOT it has been agreed that Dr Nairn will continue to work for the Franklin Templeton group ("FT") and as part of this engagement he will be responsible for a new sub-advisory arrangement which the Company will enter into with Franklin Templeton Investment Management Limited. It is expected that the sub-advisory arrangement will initially be for 70 per cent. of the Company's portfolio.
Tender offer
The Board believes that most shareholders will wish to maintain their investments in the Company, but recognises that some may wish to realise part, or potentially all, of their shareholding. In order that such shareholders will have the opportunity to do so the Company intends to put forward a tender offer for approval by the shareholders (the "Tender Offer").
The Tender Offer will be made conditional on shareholder approval being obtained at the General Meeting. The Board is satisfied that, following the Tender Offer, the Company will remain an attractive size with sufficient liquidity.
Next steps and consultation
The Board intends to undertake consultation with the shareholders of the Company on the proposals in the coming weeks.
A circular regarding the proposals, including a notice convening the General Meeting and details of the New Investment Policy and Tender Offer, will be published in due course.
For further information, please contact:
Dr Sandy Nairn 0131 270 3800
Kenneth J Greig 0131 270 3800
Franklin Templeton Investment Trust Management Limited
5 Morrison Street
Edinburgh
EH3 8BH
25 October 2021
