City Merchants High Yield Trust : Results of Scheme

19 May 2021

City Merchants High Yield Trust Limited

Results of Scheme

Further to the publication of the circular dated 22 April 2021 (the “Circular”) relating to the issue of new Ordinary Shares of no par value in the capital of the Company (the “New Shares”) in connection with the proposed merger with Invesco Enhanced Income Limited (“IPE”), to be effected by way of a shareholder approved contractual scheme of reconstruction by IPE (the “Scheme”), the Board of City Merchants High Yield Trust Limited (“CMHY” or the “Company”) is pleased to announce that the Company will acquire approximately £130.2 million of net assets from IPE under the terms of the Scheme in consideration for the issue of 66,836,392 New Shares. The number of New Shares to be issued was calculated based on a FAV per IPE Share of 74.6470 pence and a FAV per CMHY Share of 194.8580 pence, producing a conversion ratio of 0.383084, each calculated in accordance with the Scheme.

As set out in the Circular, New Shares which would otherwise be issued to Restricted IPE Shareholders pursuant to the Scheme will instead be issued to the Liquidators as nominees on behalf of such Restricted IPE Shareholders who will arrange for such shares to be sold promptly by a market maker. The proceeds of such sales will be paid to relevant Restricted IPE Shareholders entitled to them within ten Business Days of the date of sale, save that entitlements of less than £5.00 per Restricted IPE Shareholder will be retained by the Company for its own account.

Applications have been made for the New Shares to be admitted to the premium segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange (together, “Admission”). It is expected that Admission will take place at 8.00am on 20 May 2020.

Following the issue of the New Shares noted above, the Company's share capital will consist of 168,577,596 Ordinary Shares with each Ordinary Share holding one voting right.  There are no Ordinary Shares held in treasury.

The figure of 168,577,596 Ordinary Shares may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in voting rights, or a change to their interest in the Company, under the Disclosure, Guidance and Transparency Rules.

Capitalised terms used but not defined in this announcement will have the same meaning as set out in the Circular unless the context otherwise requires.

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Legal Entity Identifier: 549300JLX6ELWUZXCX14