Pollen Street eyes exit from investment trust sector
The trust will hold a general meeting on 11 October seeking shareholder approval to turn Pollen Street into a commercial company.
Pollen Street was created via the merger of the Honeycomb trust with its investment management firm Pollen Street in October 2022.
Honeycomb trust combines with Pollen Street
The trust will hold a general meeting on 11 October seeking shareholder approval to turn Pollen Street into a commercial company, effective from Q1 2024.
Shareholders would see their shares in the trust exchanged for the same number of shares in the holding company, meaning they would receive premium segment shares in the commercial company in place of their premium segment shares in the investment trust.
As part of the arrangement, Pollen Street would also cancel its existing share premium reserve, with the arising sum to be credited to its distributable reserves, it said in a regulatory filing yesterday (18 September).
As the asset manager is due to play a «larger role in dictating Pollen Street's investment activities», the business will no longer be «as readily compatible with the definition of an investment company», according to the firm, which is the main reason that has driven the change.
«The purpose of the cancellation is to increase Pollen Street's distributable reserves in order that it may carry out the subsequent reorganisation,» it added.
«The scheme, the change of listing and the subsequent reorganisation...will result in a revised corporate structure that more accurately reflects the day-to-day operations of the group.
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