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Staude Capital and Metage Capital: Alternative proposal to VPC Speciality Lending Investments Plc.’s 2023 Tender Offer – Yahoo Finance

LONDON, Sept. 12, 2022 /PRNewswire/ — On 12 September 2022, Staude Capital and Metage Capital sent a letter to investors in VPC Speciality Lending Investments Plc (LSE: VSL).

The full text of the letter is as follows:

1…….

LONDON, Sept. 12, 2022 /PRNewswire/ — On 12 September 2022, Staude Capital and Metage Capital sent a letter to investors in VPC Speciality Lending Investments Plc (LSE: VSL).

The full text of the letter is as follows:

12 September 2022

To our fellow institutional and professional investors in VPC Speciality Lending Investments Plc. (the “Company”),

Re: Consultation with the Company’s shareholders and Board on potential alternative proposals to the discount-dependent tender offer in 2023

We are writing this letter to make you aware of the constructive discussions that we have had with the Board, and a significant proportion of shareholders, regarding the issues that face the Company and the current proposed discount-dependent tender next year. Further, we are putting forward an alternative proposal for consideration and recommend convening an informal meeting of the Company’s institutional and professional shareholders to agree the best way forward.

Background

Portfolios managed by the investment teams at Metage Capital Limited1 and Staude Capital Limited2 have been long-term shareholders in the Company since 2016 and 2017 respectively. In June 2020, the Company committed to undertake a discount-dependent tender offer for 25% of the shares in issue immediately following the Annual General Meeting in 2023 (the “2023 Tender Proposal”).

The 2023 Tender Proposal, alongside a number of performance-based measures and additional marketing efforts, were introduced to address the discount between the Company’s net asset value per share and its share price. Despite these steps and strong investment performance, the discount on the Company’s shares remains stubbornly wide. We therefore thought that it was a sensible time to engage with other institutional and professional shareholders, who are independent of the Company’s investment manager, to understand their views on the Company and whether the 2023 Tender Proposal was still appropriate and sufficient to achieve its aim.

Key Issues facing the Company

From our discussions with other shareholders three key issues arose:

  1. Discount: the discount between the Company’s share price and its net asset value per share is both too wide and too volatile. The effect of this is that the returns from the Company’s stable credit portfolio are outweighed by discount volatility;

  2. Covered dividend: any proposal to address the discount must maintain a covered dividend for income investors; and

  3. Creeping control: a universal concern expressed by the independent shareholders …….

    Source: https://finance.yahoo.com/news/staude-capital-metage-capital-alternative-060000958.html

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