Templeton trust backs performance related tender offer

Templeton Emerging Markets Investment Trust on Friday confirmed its intention to introduce a five-year performance-related conditional tender offer.

The concept, which will be implemented subject to the passing of a continuation vote put to the company's annual general meeting in July, will see the Templeton put forward proposals to shareholders to undertake a tender offer for up to 25% of its issued share capital if its net asset value total return fails to exceed the benchmark total return in the the five-year period to 31 March 2024.

No tender offer will take place if net asset value total return continues to exceed the Templeton's benchmark total return.

The FTSE 250-traded trust said any offer will be at a price equal to the then prevailing net asset value less 2%, and will also be conditional on shareholders approving a continuation vote in 2024 before taking place following the annual general meeting that year.

A statement from the company said the board will recommend that shareholders vote in favour of the resolution, adding that the long-term outlook for Emerging Markets remains "favourable" and that current valuations provide an attractive investment opportunity.

Templeton Emerging Markets' shares were up 0.20% at 783.60p at 0837 BST.