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Shareholder activism at Downing Strategic Micro-Cap

Activist shareholder tries to block cash return, but board are committed to “doing the right thing for our shareholders”
April 8, 2024
  • First special dividend of £14mn (30p)
  • Second special dividend of at least £3.7mn (8p)
  • Ongoing orderly wind-up of portfolio

Downing Strategic Micro-Cap Investment Trust (DSM: 57.5p) has announced a special dividend of £14mn (30p a share) after Milkwood Capital blocked a resolution at this month’s general meeting to return the cash through a tax-efficient B share scheme.

Milkwood acquired its 28 per cent stake from two institutional investors after shareholders overwhelmingly approved an orderly wind-up of the company and a proposed return capital at the first general meeting on 28 February 2024. The board states that the activist investor is seeking to secure the future management of the company’s portfolio for itself.

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