Investors back Greycoat bid

THE rescue of Greycoat by South African investors became a racing certainty yesterday after more than 75 per cent of the property company's Britannic bondholders said they would approve the deal, writes Tom Stevenson.

The pounds 86m cash injection by the UK Active Value Fund, the investment vehicle of Julian Treger and Brian Myerson, also needs the approval of preference and ordinary shareholders. More than 50 per cent of both classes have already said they will vote for the scheme.

Most of the preference holders, who voted down a previous rescue package from Postel, the pension fund, are thought to favour terms that offer them a reduction in nominal value from pounds 1 to 60p, rather than the 40p offered in the Postel plan.

Mr Myerson said indications of support had already been received from 66 per cent of preference holders and from all the City institutions holding ordinary shares.

If the rescue is approved, the UK Active Value Fund will own between 22 per cent and 47 per cent of Greycoat's shares. The Postel plan could have passed up to 88 per cent of the company to the pension fund. The latest scheme involves a five-for-one rights issue to raise pounds 80m, a pounds 6m subscription for shares by the UK Active Value Fund, and a conversion of existing preference shares into ordinaries.