CHAM Chameleon Tst

RNS Number:9261Q
Chameleon Trust PLC
27 March 2008


Chameleon Trust plc (the "Company")

Results of Strategic Review

On 23 January 2008, the Company released its interim results for the half year
ended 30 November 2007.  In his statement, the Chairman noted that the board of
the Company (the "Board") was aware of the extent of the discount to net asset
value per share at which the Company's shares traded, and the relatively high
costs borne by a small investment trust.  He also stated that the Board was
reviewing all strategic options available to the Company to address both of
these issues.

After consulting with the Company's major shareholders, the independent
Directors of the Company have now completed this strategic review, and the Board
today announces its intention to bring forward proposals for a scheme of
reconstruction under section 110 of the Insolvency Act 1986 (the "Scheme").
Under the Scheme, the Company will be wound up under a members' voluntary
liquidation and each shareholder's investment in the Company will be rolled-over
in a tax efficient manner and exchanged for shares in a new open-ended
investment fund (the "OEIC") to be managed by the Company's existing manager,
Revera Asset Management Limited ("Revera"). All of the Company's assets (after
expenses) will be transferred to the OEIC by way of in specie transfer.

 The Board believes that the OEIC structure will provide the Company's
shareholders with the following benefits:
     
-    the ability to buy and sell shares at net asset value per share, thereby
     eliminating the discount at which the Company's shares currently trade;

-    a reduction in the total expense ratio;

-    enhanced liquidity with the daily creation and redemption of shares; and

-    the opportunity to continue to invest in a vehicle with a similar 
     investment objective   to that of the Company and to retain the services of 
     the Company's existing  manager, Revera.

Further details of the Scheme will be announced with the publication, in due
course, of a circular to the shareholders of the Company convening the meetings
required to obtain shareholder approval for the implementation of these
proposals. The timescale for the conversion will be subject to all necessary
shareholder, tax and other regulatory approvals being obtained, but the
Directors anticipate that the Scheme will be implemented by mid-summer of this
year.

In advance of bringing forward the above Scheme, the Board will shortly be
sending a separate circular to shareholders convening a meeting of the Company
at which the 'retrospective' approval of independent shareholders, on a poll,
will be sought in respect of a waiver to be granted by the Takeover Panel (the "
Panel") of the obligation to make a general offer under Rule 9 of The City Code
on Takeovers and Mergers (the "City Code").

This waiver relates to a series of share buy backs undertaken by the Company in
2006 and 2007 and is required because (i) the  Panel considers that a concert
party exists in relation to the Company comprising the Directors and major
shareholders of Revera (the "Concert Party"); and (ii) the increase in the
aggregate percentage of shares in the Company held by the Concert Party which
resulted from the repurchases by the Company of its own shares, is treated as an
acquisition of shares by the Concert Party for the purposes of Rule 9 of the
City Code.   In the event that the approval of independent shareholders to the
Panel waiver is not obtained, the Panel has confirmed that the Concert Party
will be required to dispose of such number of shares in the Company as is
required to put the Concert Party back in the position it would have been in had
the share buy backs never taken place.

Documents containing further details relating to the Takeover Panel waiver will
be posted to shareholders as soon as reasonably practicable.

Contact:
Martin Ritchie     Chairman, Chameleon Trust plc                   07802 154999
Glen Nimmo         Chief Executive, Revera Asset Management Ltd    0131 524 6151


27 MARCH 2008


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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