Bolton's Fidelity China Special Sits to issue C shares at 100p

The board of Anthony Bolton’s Fidelity China Special Situations trust has confirmed the issue price of the C-shares issue, which it hopes will complete by the end of February.

Back in early November the board said it was seeking to issue additional C shares via an open offer to all existing shareholders, and an offer for subscription and placing to meet high levels of investor demand, effectively compressing the investment company’s premium.

The trust's premium, which has been as high as 13.1% since its launch in April, currently stands at 6.2%.

The board of the £585 million trust has announced plans to issue the C shares at 100p each, converting into ordinary shares of the company by late February 2011. The proposed 100p price represents a discount to NAV at 112.5p and its current share price of 119.5p. 

A stock exchange statement said: 'The number of ordinary shares arising on the conversion of the C Shares will be determined on the basis of the respective net asset values of each share class on the conversion day, expected to be Friday 25 February.'

The number of C shares available under the issue is yet to be determined, although details will be included in the prospectus expected to be published in early January.

On 11 February the board is proposing that a general meeting of shareholders takes place to approve the proposals and by 25 February they are aiming for the C share admission to the London Stock Exchange.