GUINNESS FLIGHT GEARED INCOME & GROWTH
15 September 1999
Guinness Flight Geared Income & Growth ('GFGIGT)
City of Oxford Investment Trust PLC ('City of Oxford')
Updated Terminal Asset Value
The recommended Scheme for the reconstruction of City of
Oxford was announced on 27 August 1999.
Based on net assets at the close of business on 13
September 1999 and the assumptions set out below, the
indicative Terminal Asset Value per City of Oxford Share
was 30.32p and the estimated Issue Price of a GFGIGT
Geared Ordinary Shares calculated in accordance with the
Formula Issue Price would be 120.81p. This Issue Price
compares to the assumed NAV at the Calculation Date of
145.81p and market price of 134.5p per GFGIGT Geared
Ordinary Share, at 13 September 1999.
The latest date for receipt of Forms of Election from
City of Oxford Shareholders is 10:00am on 19 September
1999. The placing of new GFGIGT Shares closes on 24
September 1999.
Enquiries:
Investec Guinness Flight Chris Burvill 0171 597 2000
Andrew Martin Smith
HSBC Investment Bank plc Ravi Anand 0171 336 2234
Assumptions
The principal bases and assumptions used in deriving the
illustrative statistics set out in this announcement are
set out below:
1. City of Oxford has total assets of £52.05 million on
the Calculation Date and the City of Oxford's Ordinary
Shares TAV is 30.32p per share. GFGIGT has total assets
of £64.58 million as at the Calculation Date including
GFGIGT revenue reserves amounting to £214,859.
2. 60 per cent. of City of Oxford Shareholders and 40
per cent. of City of Oxford Zero Dividend Preference
Shareholders elect to receive GFGIGT Shares under the
Scheme resulting in £5.52 million of assets received in
consideration of the issue of 4.57 million Geared
Ordinary Shares at a Formula Issue Price of 120.81p and
£16.88 million of assets received in consideration of the
issue of 15.21 million Zero Dividend Preference Shares at
111p, the Placing raises £39.86 million, being £36.10
million by the issue of 33.12 million Income Shares at
109p each and £3.75 million by the issue of 3.38 million
Zero Dividend Preference Shares at 111p each. In
addition a £29.33 million bank loan will be taken out
with an interest rate fixed at 7.50 per cent. per annum.
The proceeds are invested immediately.
3. GFGIGT's issue expenses will amount to 2.10 million
excluding the costs of investing the proceeds of the
Placing and the Scheme, stamp duty and excluding the
benefit of any transfer of securities from City of Oxford
at mid-market price which are compatible with GFGIGT's
investment policy.
4. The other assumptions numbered 4 to 17 in the GFGIGT
Prospectus dated 27 August 1999 remain applicable.
The definitions in the announcement shall have the same
meaning as set out in the Prospectus dated 27 August
1999.