Market News - Offer for Dartmoor Investment Trust

Market news 7:00 Thu 27 Oct 2005 Private investor bids for collapsed Dartmoor trust Shareholders in the collapsed Dartmoor investment trust, once a high-flying fund of split capital trusts, have been given the chance of a cash exit thanks to an offer tabled by an obscure private investor.The trust, formerly run by Exeter Asset Management's Chris Whittingslow, was launched in 1990 to invest in split-cap trusts and became a keystone of the sector.However, although the value of its assets hit £230 million at one stage, the market downturn and the collapse of the split-cap sector pummelled the trust, resulting for example in a £100 million loss over the year to April 2002. The shares were suspended later that year after its liabilities rose above the value of its assets.At the end of April this year the trust's assets were worth a little more than £12 million, none of which was attributable to equity shareholders.Mrs Marion Phillips, a private investor who bought into Dartmoor in 2002 and who owns shares in several splits, has now made an offer for all the voting and non-voting shares via Eastwood Anglo Corporate Finance. The total offer values the trust's equity at just £87,281.Phillips already owns more than 20% of the voting shares and controls, after taking into account preference share votes, more than 15% of the votes. She plans to support the board's existing strategy and expects at least one seat on the board.'Mrs Phillips wishes to be in a position to protect to the greatest degree possible the value of her investment,' a statement said.'Whilst holdings would otherwise be difficult to dispose of at value and the holders would have little or no influence over the running of the company, Mrs Phillips believes that by concentrating her holding she will be in a position to maximise the limited value that currently resides in the equity shares.'In July, Dartmoor's ordinary shares were converted into voting deferred shares and non-voting ordinary shares, while holdings below 6,000 shares were cancelled. Phillips' offer values both classes of share at £1. Investment trust news brought to you by award winning financial publishers CityWire.co.uk Back

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