BDO advised El Oro, a Guernsey listed investment fund, on its merger with JPMorgan Elect plc. El Oro, which had a large element of “family” shareholding within its shareholder base held both listed and unlisted investments in sectors including mining and brewery. JPMorgan Elect operates three distinct investing strategies of Managed Cash, Managed Income and Managed Growth. El Oro had total net assets of c£46.2m, including unusually for an investment fund, a property in Knightsbridge and a collection of artwork that had to be sold to enable the merger to take place. The outcome saw 57% roll over into JPMorgan Elect and 43% elect for cash.
Our BDO corporate finance team were quick to understand that the best potential outcome was to provide a cash exit, at a reasonable NAV, for some shareholders while preserving an investment for other shareholders. This was achieved through a tax efficient merger with another fund. The team worked well in identifying, and working to achieve, an opportunity where all shareholders needs were fairly met.
Una Ni Dhonaill, El Oro Limited