Share Offer 1 Withdrawal
If you bought community shares in our first community share offer in 2014 and wish to withdraw them, then please read all the information below.
PEC Renewables’ business model assumes that any withdrawal of share capital is suspended for the first 5 years of any particular Member’s investment. This assumption was made clear on page 20 of the 2014 share offer document:
Share Offer 1 2014:
‘The return of Members’ capital can be achieved by PEC Renewables purchasing the Shares back from the Members. Members will have the opportunity to apply for some or all of their Shares bought back from year 6 onwards. The Directors intend to establish a cash reserve to enable up to 1/15th
of the capital to be bought back by the Co-operative in each of the 15 years from 6 to 20. If requests for Share to be bought back are oversubscribed (i.e. greater than the amount the Directors deem appropriate to acquire) the amount of capital acquired per member will be pro-rated according to their proportional holdings.’
2014 shareholdings have now been held for 6 years, so if you wish to do so you can apply for your 2014 shareholdings to be paid back.
How much can I withdraw?
You can:
a) Apply to withdraw all, or some, of your shareholding, or
b) Keep your shareholding the same
To reduce administration, applications for partial withdrawal will only apply if your 2014 shareholdings are more than £300. As an indication of reserves available, 1/15th is equal to approximately £40,000.
How does the Board decide whether or not to approve applications?
In considering applications, the Board will apply the following decision making process:
Oversubscription:
In a situation where the total value of applications for withdrawal exceeds the value of reserves set aside for repayment, Members requesting full withdrawal of holdings of £300 or less will be repaid in full and everyone else will have their request reduced by the percentage of the oversubscription.
Undersubscription:
In a situation where the total value of applications for withdrawal is significantly less than the value of the reserves to be repaid, all partial and full applications will be approved and the remainder of the capital repayment spread evenly across remaining eligible Members.
How do I apply?
Please complete and return the share withdrawal application form below by Friday 4th
September 2020.
When do I know if my application is successful and when will I receive payment?
Applications will be considered in accordance with the annual accounts and will be determined before the Annual General Meeting (AGM) in November 2020. You will be notified as to whether your application has been successful prior to the AGM. Capital repayments will be made at the same time as the Member interest payments after the AGM. Investors receiving return of capital will receive pro rata interest on that part of their investment for the period 1st
July to the AGM date.