Baillie
Gifford China Growth Trust PLC (BGCG)
Legal
Entity Identifier 213800KOK5G3XYI7ZX18
Conditional Tender Offer of
up to 100% Introduced
The Board of Baillie Gifford China
Growth Trust plc (the "Company" or "BGCG") announces the
introduction of a performance related tender offer (the
"Conditional Tender Offer") following an internal review and after
discussion with the Company's largest shareholders.
In the event that the Company's net
asset value total return does not exceed the benchmark total return
(MSCI China All Shares index in sterling terms) over the period
beginning from the NAV announcement in relation to 29 November 2024
to the NAV announcement in relation to 30 November 2028, then the
Conditional Tender Offer will be held as soon as practicable
thereafter. The Board believes that a Conditional Tender Offer in
December 2028 will allow the Company and Baillie Gifford & Co,
its Manager, appropriate time to outperform against its benchmark
and in the event it does not, to offer shareholders a liquidity
event.
The Conditional Tender Offer, if
implemented, will be for 100% of the issued share capital of the
Company. The Conditional Tender Offer will be priced close to the
prevailing net asset value at the time of repurchase (adjusted for
the costs associated with the tender offer).
The Board has an active liquidity
management policy, the primary purpose of which is to reduce
discount volatility. Buying shares at a discount also results in an
enhancement to the NAV per share. The introduction of the
Conditional Tender Offer will not change the Board's
current approach to discount management.
Chair Nick Pink said "The Board
believes the introduction of the Conditional Tender Offer
is to the benefit of all shareholders. Over 4 years shareholders
will receive either outperformance relative to the benchmark or an
opportunity to redeem 100% of their holding at close to
NAV/share.
For investors in China equities, the
Board believes the Company offers a differentiated growth strategy.
The Board is committed to using all the benefits of the closed end
company structure where they enhance shareholder value, measured
using the Company's KPIs. The announcement of the
Conditional Tender Offer therefore adds to the existing
liquidity policy to buy-back shares, the use of prudent gearing,
the ability to own private investments and competitive costs,
principally via a tiered management fee. Together we believe these
features distinguish BGCG from its peers".
For
further information please contact:
William Simmonds, J.P. Morgan Cazenove Tel: 020 3493
8000
Naomi Cherry, Baillie Gifford & Co Tel: 0131 275
2000
Regulated Information
Classification: Additional regulated
information required to be disclosed under the laws of a Member
State