Some investment trusts issue Subscription Shares. On issue, they are available to investors in the Company at that time, and offer them the right to purchase Shares at specified future dates at pre-determined prices.
The J.P. Morgan Indian Investment Trust plc issued Subscription Shares on 4 November 2008 as a bonus issue to Ordinary shareholders on the basis of one Subscription share for every five Ordinary Shares held. Each Subscription share confers the right (but not the obligation) to subscribe for one Ordinary share on any business day during the period from 3 January 2010 until 2 January 2014, after which the rights on the Subscription Shares will lapse.
Future exercise prices, calculated at the close of business on 5 November 2008 and based on the Company’s net asset value per share of 246 pence, plus a percentage premium to such amount, rounded up to the nearest whole penny, have been determined as follows:
Subscription Share Rights are exercised between and including:
3 January 2010 and 2 January 2012, 247 pence.
3 January 2012 and 2 January 2014, 291 pence.
J.P. Morgan investors wishing to convert their JPMorgan Indian Subscription Shares should complete and return the relevant conversion form with a cheque to the freepost address at the top of the form. Forms must be received at least seven business days before the calendar month in which the conversions are applicable.
Shareholders wishing to convert their JPMorgan Indian Investment Trust Subscription Shares, who hold their shares in Certificated form, should refer to the instructions on the reverse of their Subscription Share Certificate(s).
Your Subscription Share certificate and cheque must be received by Equiniti Limited by 5:00pm on 30 December 2011in order to benefit from the conversion price of 247 pence.
If you hold your J.P. Morgan Indian Investment Trust Subscription Shares in un-certificated form (i.e. in CREST), the new CREST Participant and Member Account IDs are outlined below:
CREST Participant ID = 6RA81
CREST Member Account ID = RA108718
The USE (Unmatched Stock Event) instruction should be input by 11.00am and received by 1.00pm on 30 December 2011 in order to benefit from the conversion price of 247 pence per share. Any instructions received after this time will be subject to the increased conversion price of 291 pence per share.
For the purpose of UK Taxation, the issue of Subscription Shares is treated as a reorganisation of the company’s share capital. Whereas such reorganisations do not trigger a chargeable disposal for the purposes of the taxation of capital gains, they do require shareholders to reallocate the base costs of their Ordinary Shares and Subscriptions Shares received.
At the close of business on 5 November 2008 the middle market prices of the Company’s Subscription Shares were as follows:
Ordinary Shares: 246 pence
Subscription Shares: 67.50 pence
If an individual investor held five Ordinary Shares (or a multiple thereof) at that time they would have received a bonus issue of one Subscription share ( or relevant multiple thereof) and would apportion the base cost of such holding 94.8% to the five Ordinary Shares and 5.2% to the Subscription Shares.
If you need tax advice, you should contact a qualified tax professional. If you have any other questions regarding the Indian Subscription Shares, please contact our dedicated Investor Services Team on 0800 731 1111.