91.4% of LICs & LITs Maintain or Increase Dividends/Distributions for 1H'FY23

There was plenty of news flow in the LMI market in February with 1H'FY23 reporting season. In the attached report we take a look at the dividends/distributions declared for the half year period for LICs & LITs compared to the pcp. Share/Unit holders in LICs and LITs fared well with 91.4% of LICs and LITs that pay ordinary interim dividends/distributions either maintaining the dividend/distribution amount for the half year period to 31 December 2022.  

Key news items include:

TGF also announced they were undertaking a capital raising comprising:

PE1 Made a Play for the CD Series of Funds: Courtesy of a news article in the AFR, the cat was let out of the bag that PE1 submitted two conditional non-binding indicative proposals to merge the four funds in the CD Series (CD1, CD2, CD3 and CD4) with PE1. The proposal was made after the failed attempt to merge the CD Series of funds by the Responsible Entity (E&P Investments Limited) in 2022. The PE1 proposal was rejected and PE1 is currently not in active discussions with E&P Investments Limited.

LSX Completes Pani Sale: On 20 February 2023, Lion Selection Group Limited (ASX: LSX) announced the completion of the sale of its Merdeka shares received as part of the consideration for the sale of its JV interest in Pani. The shares were progressively sold since late January 2023 on the Indonesian Stock Exchange for a total of AUD$32.5m. LSX also received the deferred consideration of US$10m due under the sale of its Pani interests. LSX announced the payment of a special dividend of 2cps to shareholders, scheduled to be paid on 3 April 2023.The dividend will be unfranked. The Company announced it intends to pay an annual dividend for the FY23 period. With the completion of the sale, the portfolio includes $80m net cash, equivalent to 57cps cash backing. The Company will seek to deploy the cash in new investment opportunities.