AUKT Aberdeen UK Tracker Trust

TIDMAUKT

RNS Number : 6649W

Aberdeen UK Tracker Trust plc

13 February 2017

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME COULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN ANY JURISDICTION, INCLUDING IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA

Aberdeen UK Tracker Trust plc (the "Company" or "AUKT")

LEI - 549300DUM2B8HU1CEH71

Proposed Reconstruction and Voluntary Winding-Up of the Company

13 February 2017

On 30 November 2016, the Company announced that the Board had undertaken a review of the Company's investment mandate, market position and prospects for growth and that it had agreed heads of terms with BlackRock Income Strategies Trust plc ("BIST") in respect of a merger with BIST to be effected by way of a scheme of reconstruction of the Company under Section 110 of the Insolvency Act 1986 ("the Scheme"). The Board are now pleased to announce further terms that have been agreed with BIST, which has today been renamed Aberdeen Diversified Income and Growth Trust plc ("ADIGT").

Following further consultation with certain of the Company's largest shareholders, it has been determined that Shareholders electing to receive cash will now be limited to 60 per cent. of the Company's issued share capital (excluding treasury shares), raised from the previously announced level of 40 per cent. As previously announced, aggregate elections for cash will be scaled back into new ADIGT shares on a pro rata basis if applications exceed 60 per cent. of the shares in issue (excluding treasury shares).

Additionally, following further consultation with many of ADIGT's shareholders, the Board of ADIGT has given detailed consideration to the appropriate discount control mechanism for the combined company going forward following completion of the Scheme. The Board of ADIGT has decided, subject to normal market conditions, prevailing gearing level and the composition of ADIGT's portfolio, to implement a discount control mechanism to maintain ADIGT's share price discount to net asset value (ex income, debt at fair value) at no wider than 5 per cent., by repurchasing ordinary shares in the market. The Board of ADIGT has also resolved to put forward a continuation vote to shareholders at the Annual General Meeting in 2020 and at every Annual General Meeting thereafter.

Both Aviva Investors Global Services Limited and 1607 Capital Partners, acting on behalf of certain of their underlying clients which have appointed them as investment manager, have indicated an intention to support the Scheme and to vote, or procure the vote, in favour of the Scheme at any relevant general meetings of shareholders of both AUKT or ADIGT on behalf of the entire holding of shares over which they exercise control as discretionary investment manager. These holdings represent, in aggregate, 43.7 per cent. of the Company's shares outstanding as at 9 February 2017.

Further details of the Scheme will be announced in a Circular which is expected to be issued in early March 2017. If the relevant resolutions receive shareholder approval then the Scheme is expected to become effective in early April.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.

Enquiries:

William Hemmings / Gary Jones

Aberdeen Fund Managers Limited

Tel: 020 7463 6000

William Simmonds

J.P. Morgan Cazenove

Tel: 020 7742 4000

This information is provided by RNS

The company news service from the London Stock Exchange

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February 13, 2017 02:01 ET (07:01 GMT)

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