Woodford investors to share £98m payout in December

Investors trapped in the failed Woodford Equity Income fund are set to share a £98m payout next month, funded by the offloading of the last of the stocks included in a cut-price sale to US investor Acacia Research.

Link Fund Solutions, administrator of the fund, said in a letter to investors that it expected to issue the payout, the fourth from the fund’s wind-up, ‘on or around’ 11 December. Another letter detailing the payment per fund unit will be sent on 9 December.

The payout will bring the total distributed to investors since former manager Neil Woodford was sacked from the fund last year to £2.5bn, and will leave around £191m of stocks still to offload. 

Link warned investors in September that it could take until late 2021 for the remaining stocks held by the fund to be sold and investors to receive the last of their money back.

The fund administrator said the transfer of the final assets included in the Acacia deal was set to take place ‘in the next few days and, in any event, no later than 31 December’.

Should the transfers fail to take place in time for the 11 December distribution, a fifth payout will be made early next year.

In quarterly results earlier this month, Acacia highlighted the fund’s stakes in Arix Bioscience (ARIX) and Viamet Pharmaceuticals remained to be transferred under the deal.

Acacia has chalked up a €152m (£113m) gain on the deal to buy 18 quoted and unquoted healthcare stocks, which wiped 20% off the value of the fund.

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