Alliance Trust OK for £645m ‘distributable reserve’

Alliance Trust plc, the £3 billion Dundee investment trust company which uses external fund managers Willis Towers Watson (WTW), said on Thursday that a court has approved the conversion of its £645.3 million merger reserve into a distributable reserve.

Alliance Trust previously received shareholder approval for the move.

“This has significantly increased the proportion of the company’s reserves capable of being distributed to shareholders,” said Alliance Trust.

“£3,242m is available for distribution, thereby affording the board additional flexibility when contemplating its future dividend and distribution policy.

“A certified copy of that court order is expected to be registered by the Registrar of Companies in Scotland no later than 12 July 2021.”

Alliance Trust plc chairman Gregor Stewart said: “We are pleased to have completed the conversion process on behalf of shareholders.

“This significantly increases our distributable reserves and provides us with a greater degree of financial flexibility for the future and therefore underpins the company’s objective of paying a rising dividend.”

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