Platinum Capital avoids wind-up clause activation

International equities manager, Platinum Capital Limited (PMC) has managed to avoid a self-imposed sunset clause which had the potential to see it being wound-up.

It avoided the sunset clause by a mere 6.7%.

The company told the Australian Securities Exchange that its board had announced in April that it would be conducting a formal strategic review of the company and also advice the market of the operation of a sunset clause in the PMC constitution with an assessment date of 31 July, this year.

The sunset clause states that if by the Assessment Date PMC’s share price is trading at an ‘average discount’ of greater than 15% of PMC’s net asset value measured over the 12 calendar weeks preceding the Assessment Date “the PMC Board must call a general meeting of members within 90 days to vote on, amongst other things, all necessary resolution to effect a voluntary winding up of PMC”.

“Following the conclusion of the Measurement Period, the PMC Board is pleased to advice that PMC’s share price traded at an ‘average discount’ of 8.3% of PMC’s net asset value during the Measurement Period,” it said.

“As a result, the sunset clause has not been triggered.”