Hazel Renewable Energy VCT2 plc
Shareholder Update
28 April 2017
The Company has today sent letters to all Shareholders updating them on the progress in respect of plans following the result of the General Meeting in January. The text of the letter is as follows:
"Dear Shareholder
As you will be aware from previous correspondence, at the General Meeting held by the Company on 19 January 2017, Shareholders voted against the Company continuing as a Venture Capital Trust for a further five years. In accordance with the Company's Articles of Association, the Directors of your Company are now working on proposals "for the voluntary liquidation, reconstruction or other reorganisation of the Company".
At a similar shareholder meeting held by the Company's sister company, Hazel Renewable Energy VCT1 plc ("Hazel 1"), shareholders of that company voted the opposite way i.e. to continue as a Venture Capital Trust for the next five years. By way of background, your Company holds an identical investment portfolio to that of Hazel 1.
The differing outcomes of the shareholder votes has presented a significant challenge to the Board in developing proposals which both maintain Shareholder value and offer a satisfactory way forward for all Shareholders. The Board has so far engaged with a number of parties, including Hazel Capital, the Investment Advisor, who may be able to help to provide a satisfactory solution and work is ongoing with these parties to allow them to produce formal proposals. The Board has also appointed a consultant to assist with this process. It is however clear to the Board that fully developing these plans will take some time.
The Board had hoped to be in a position to call a further Shareholder meeting in mid-May. It now appears that this is an unrealistic deadline and further time will be needed to ensure that a flexible solution can be offered that meets the requirements of and maximises value for all Shareholders.
The Board envisages that it will be in a position to present such proposals to Shareholders by August.
I will, of course, update Shareholders with any significant developments as they arise and look forward to presenting proposals as soon as they are finalised.
Yours sincerely
Peter Wisher
Chairman"