SDCL Efficiency Income Trust encourages shareholders to back wind-down

(Sharecast News) - Energy solutions-focused investment trust, SDCL Efficiency Income Trust (SEIT), has recommended shareholders to vote in favour of a proposed wind-down following a period of a persistent share price discount to net asset value, causing shares to plummet on Tuesday.

As announced in April, SEIT's board said that the sustained discount to NAV, its gearing position and lack of access to equity capital meant that the "status quo was not sustainable". Major shareholders also voiced clear support for an orderly return of capital, the company said.

Shareholders are now being asked to vote on the wind-down objective and policy, and the cancellation of the share premium account, among other things.

If approved, SEIT will cease making new investments outside of the existing portfolio and will focus on the "orderly realisation of its assets, seeking to balance timely returns of cash to shareholders with the objective of maximising value".

Any initial proceeds from asset realisations would first be used to repay borrowings before any cash returns to shareholders, SEIT said.

In light of the proposed wind-down, the company decided not to declare a fourth interim dividend for the fiscal year to 31 March.

"The board has considered carefully the alternatives available to the company and unanimously concluded that the proposed wind-down is in the best interests of shareholders as a whole," SEIT said.

The stock was 22.6% lower at 35.6p by 1141 BST.

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