Shareholders in First Ireland Investment Company, the investment fund listed in Dublin and London, have approved a capital reorganisation aimed at reducing the discrepancy between the fund's share price and its net asset value. Part of the restructuring involves the issue to shareholders - most of which are institutions - of convertible loan stock and a reduction in the share capital.
An extraordinary general meeting in London yesterday approved the restructuring with a 99.2 per cent vote in favour, but the reorganisation has still be approved by the High Court in London. A court hearing will be held on September 17th.
First Ireland shares have consistently traded at a discount to their net asset value (NAV) per share. Yesterday the shares were at 162p sterling compared to the most recent value figures of 180.6p sterling per share, an 11 per cent discount.
First Ireland - which is managed by AIB Investment Managers - has said that the discount to NAV is mainly due to an excess of supply over demand for the ordinary shares. The company said last month it was "determined to improve materially the relationship between First Ireland's share price and its net asset value by purchasing or redeeming the convertible loan stock".
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