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Downing Strategic Micro-Cap wind-down takes unexpected turn

An activist shareholder is attempting to take control of the small-cap fund without tabling an offer. Shareholders are advised to protect their interests
July 15, 2024
  • Milkwood Capital requisitions a general meeting
  • Activist shareholder wants to appoint its own board of directors

Downing Strategic Micro-Cap Investment Trust's (DSM:10p) portfolio wind-down has taken yet another twist after Milkwood Capital requisitioned a general meeting.

Having acquired its 28 per cent stake from two institutional investors after shareholders overwhelmingly approved an orderly wind-up of the company in February, Milkwood wants to appoint three directors to the board and remove DSM’s current and experienced directors. It has also tabled a special resolution that the board does not declare any further return of capital prior to the meeting on 5 August. Notwithstanding the terms of the special resolution, it has no impact on the three special dividends, worth £27.2mn (59.5p a share), that the board has declared since 3 April 2024.

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