Platinum Capital LIC withdraws proposal to convert to ETF
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The news: Platinum Asset Management’s listed investment trust Platinum Capital has withdrawn its proposal to merge with Platinum International Fund Complex ETF due to opposition of the restructure from its merger candidate L1 Capital.
The context: Platinum said that after considering anticipated voter turnout, and L1 Capital and its associates notifying their intention to vote against the scheme, it believed the proposal would not receive the 75% approval threshold required.
Due to the withdrawal, Platinum has made amendments to its on-market buy-back terms. If the buy-back is approved at its annual general meeting on 12 August, it will not buy back more than 20% of the company’s shares in the period prior to the extraordinary general meeting by L1 Capital.
Platinum also noted that it had received no-binding indicative proposal from L1 Capital which would allow L1 Capital to manage Platinum Capital’s investment portfolio through its L1 Capital Global Long Short investment strategy.
L1 Capital is also looking to appoint Rachel Grimes, David Gray and Douglas Farrell as directors of Platinum Capital. If they are elected, Margaret Towers and Ian Hunter intend to resign from the board while Joanne Jefferies intends to remain on the board and has L1 Capital’s support.
Separately, Platinum Capital has appointed Katrina Glendinning to the board as an independent non-executive director effective today. Glendinning has over 35 years of financial services experience and was previously chief financial officer of Pengana Capital Group. Platinum noted that her election at the AGM was supported by L1 Capital.
