Saw this and it struck me as a good opportunity…
Ecofin Water and Power is an investment trust. It has just gone to a continuation vote and to get the vote through management has proposed the trust is split into:
- A liquid vehicle with liquid investments.
- An illiquid realisation vehicle to be wound up within two years -14.1% April 2016 NAV.
- A cash option – of up to 50% of NAV.
Details are here.
The trust is currently trading at a discount of 16% to a NAV including realisation costs. I suspect post realisation this discount will have narrowed – I would anticipate a c10% profit on this within a month or two, should the vote go through…
I should add below is based on a NAV of 163p – since then it has fallen to 157p… Some may be due to dividend payment / changes in calculation methodology but makes opportunity slightly less attractive than outlined below….
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