Rensburg AIM VCT Plc have today (18/6/2015) announced that the circular giving details of the previously proposed wind-up of the company has been put on hold. They state that the previous announcements have “……acted as a catalyst to generate interest in the Company and several of the parties with whom the Board had held previous discussions have approached the Board with proposals which might prove to be more attractive than before”. Maven Capital Partners, who had written to shareholders, is not one of the parties though.
ShareSoc had made representations on the wind-up to the board as we considered it very prejudicial to certain shareholders and we were in the process of sending a letter to all shareholders on the register when the latest announcement was made. Our comments on this matter in the past and the letter to shareholders can be read on this page of our website: www.sharesoc.org/category/campaigns/.
In summary we believed that other alternatives should be pursued. It is good that the board has changed its mind on this matter and is now considering other options. But it surely demonstrates that active engagement by ShareSoc and by shareholders with companies is important.
The AGM will still take place on the 22nd July and shareholders present should ask these questions: 1) what have been the costs of this abortive development of proposals for a wind-up (legal and other costs) and 2) why did the board not actively pursue alternative proposals before rather than waiting for the previous announcements to “act as a catalyst to generate interest” as their announcement puts it?