Bolton’s Fidelity China trust to issue shares

Fidelity’s China Special Situations trust, managed by Anthony Bolton, has announced it expects to launch a share issue in January to tackle its rising premium.

Anthony Bolton
Anthony Bolton

The group says the share issue comes because as at November 8, the investment trust’s shares were trading at a premium to the latest published net asset value of 9.7%.

A statement says: “In view of this, and following the announcement on November 1 that the board were considering ways in which demand for the shares of the company could be satisfied, the board now announces that it is intending to increase the number of shares in issue, subject to shareholder approval, through an open offer of shares in which priority will be given to shareholders as part of a public offer for subscription and placing.” (article continues below)

The statement says a further announcement with details will follow in due course but it expects to open the share offer in early January and complete it by end-February 2011.

In the meantime, the board has the ability to issue up to a further 20,549,999 ordinary shares, without shareholder consent, under an existing share issue facility.