General Accident Plc Proposes Cancellation and Tender Offer of Preference Shares
Why we think this is good
The proposed cancellation and tender offer of General Accident's preference shares is a positive development, as it will simplify the company's capital structure and provide preference shareholders with a premium to the current market prices. While the preference shares are being cancelled due to regulatory changes reducing their usefulness, the overall transaction appears to be well-structured and beneficial for shareholders.
Key Points
- General Accident plc is seeking shareholder approval to cancel all of its preference shares
- The company is inviting eligible holders to tender their preference shares for purchase
- The proposed consideration is a premium to current market prices
- Preference shareholders who vote will be eligible for a voting fee
Summary
General Accident plc is seeking shareholder approval to cancel all of its £110 million 7.875% cumulative irredeemable preference shares and £140 million 8.875% cumulative irredeemable preference shares. In parallel, the company is inviting eligible holders of the preference shares to tender their shares for purchase by Jefferies International Limited. The proposed consideration for the preference shareholders is a premium to the current market prices, with the cancellation price being the same as the tender offer price. Preference shareholders who vote on the resolutions, either by tendering their shares or appointing the chair as proxy, will be eligible for a voting fee.