TIDMAFMC

RNS Number : 7508R

Aberdeen Frontier Mkts Inv Co Ltd

01 July 2020

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE EU MARKET ABUSE REGULATION 596/2014.

1 July 2020

Aberdeen Frontier Markets Investment Company Limited

LEI: 213800X9N731I4IPK361

Notification of proposed cancellation of admission of Ordinary Shares to trading on AIM and proposed voluntary winding-up of the Company

Aberdeen Frontier Markets Investment Company Limited (" AFMC " or the "Company") (AIM: AFMC), the closed-end investment company admitted to trading on AIM, announces that in line with the Company's discount control policy adopted in October 2018, the Company's Share Price Total Return has failed to exceed the Company's reference benchmark being the Morgan Stanley Capital International Frontier Markets Index (the "Benchmark"), in sterling terms over the period from 1 July 2018 to 30 June 2020.

In October 2018, the Board, with the consent of shareholders, resolved to adopt a new discount control policy, amending its historic policy of entitling investors to tender a number of Ordinary Shares in excess of 15 per cent. of the number of Ordinary Shares held by them at that point in time, to instead providing its shareholders at the end of the period from 1 July 2018 to 30 June 2020 with the opportunity to fully exit their investment in the Company for cash, at the then prevailing net asset value less any applicable direct costs including any realisation costs of underlying investments, should the Share Price Total Return for this two year period fail to exceed the Portfolio's reference Benchmark (in sterling terms). Full details regarding the amendment to the discount control policy can be found in the circular dated 19 September 2018 which is available on the Company's website at aberdeenfrontiermarkets.co.uk

Therefore, following careful consideration of the amended discount control policy, the requirement to offer shareholders a cash exit, the prospects for frontier markets and the current size and operational costs of the Company, the Board believe that it is in the best interests of the Company and its shareholders to seek the proposed Cancellation and commence an orderly winding-up of the Company.

Having taken into consideration the costs of providing any possible rollover option and indications received from shareholders representing a large number of the Company's Ordinary Shares seeking cash, the Board has concluded that the possible value of net assets that might seek such a rollover would be insufficient to make this a viable option.

The Company will issue further updates relating to the detailed timetable for the Cancellation and the winding-up of the Company and will be posting a circular to shareholders to convene an extraordinary general meeting of the Company for shareholders to vote on such proposals in due course.

DEFINITIONS

 
 Cancellation               the proposed cancellation of 
                             the admission of the Ordinary 
                             Shares to trading on AIM 
 Ordinary Shares            the Ordinary Shares of no par 
                             value each in the capital of 
                             the Company 
 Portfolio                  the Company's portfolio of investments 
                             from time to time 
 Share Price Total Return   expressed in percentage terms, 
                             the change in share price of 
                             an Ordinary Share calculated 
                             by reference to market price 
                             (as opposed to NAV) re-investing 
                             all revenue and capital distributions 
                             on the relevant ex-dividend date

For further information please contact:

 
 MANAGER: 
  G ary Jones 
  A berdeen Standard Fund Managers Limited (Investment Manager 
  to Aberdeen Frontier Markets Investment Company Limited) 
  T: +44 (0) 20 7463 6000 
  Gary.Jones@aberdeenstandard.com 
 BROKER: 
  David Benda 
  Numis Securities Limited 
  T: +44 (0) 20 7260 1275 
  D.Benda@numis.com 
 NOMINATED ADVISER: 
  Philip Secrett 
  Jen Clarke 
  Seamus Fricker 
  Grant Thornton UK LLP 
  T: +44 (0) 20 7383 5100 
  Philip.J.Secrett@uk.gt.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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July 01, 2020 09:28 ET (13:28 GMT)

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