Business update 31 March 2023
27 April 2023
Quest for Growth closed the first quarter of its financial year with a net profit of € 5.3 million. € 2.8 million of this can be used for dividend distribution. Return on equity was +3.67%. Quest for Growth’s share price decreased by 6.7% over the first three months of the year, reaching a closing price of € 5.60 on 31 March 2023. The discount of the share price in relation to the net asset value rose to 29.8% at the end of the quarter, compared to 24.3% at the end of 2022.
Simplified capital structure, increased number of ordinary shares and reduced rights for preference shares
The Extraordinary General Meeting of 30 March 2023 has made the following unanimous decisions:
The preferred class of shares A and the preferred class of shares B are merged into one class of preference shares.
Of the 1,000 existing preference shares, 500 will be divided into 535,249 ordinary shares and lose their rights as preference shares. As a result, 535,249 ordinary shares will be added without increasing capital, which means the intrinsic value of each ordinary share is diluted by 2.86%.
These additional 535,249 ordinary shares are subject to a lock-up obligation. Every six months, 25% of the non-transferability will be eliminated so that the shares are fully marketable as from 30 March 2025.
Another 500 preference shares remain which continue to be reserved as variable incentive for the active management and on which a purchase option rests to the benefit of the Managing Company.
The 500 preference shares are entitled to propose two candidate directors of the board of directors of QfG.
The surplus share of the dividend that is distributed to the preferred shareholders will no longer be calculated based on the share of the net profit which exceeds the amount necessary to pay all shareholders a reimbursement which is equal to a nominal value of 6% on an annual basis, but will be calculated based on the share of the dividend which exceeds the amount necessary to pay the shareholders a reimbursement equal to a nominal value of 6% cumulative and recoverable for previous years in which there were insufficient or no dividend distributions; this is to be calculated from 1 January 2023.
The surplus preferential dividend entitlement is reduced from 20% to 10% so that the fraction of the surplus share of the dividend credited of all shareholders is raised from 80% to 90%.