LONDON & ST LAWRENCE INVESTMENT COMPANY PLC : - Proposed Scheme of Reconstruction

      THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR RELEASE,  
      PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED  
               STATES, AUSTRALIA, CANADA OR THE REPUBLIC OF SOUTH AFRICA           

    26 January 2017

                     London & St. Lawrence Investment Company PLC                  

                           Proposed Scheme of Reconstruction                       

    Further to the strategic review announcement made on 25 November 2016 and
    following consultation with its largest shareholders, the Board of London & St.
    Lawrence Investment Company PLC ("LSLI" or the "Company") announces that it is
    proposing a scheme of reconstruction under section 110 of the Insolvency Act,
    1986 (as amended) and members' voluntary liquidation of LSLI (the
    "Reconstruction").

    Under the Reconstruction, shareholders will have the option of electing to (a)
    roll over their investment into new units in Practical Investment Fund, a unit
    trust with the objective of providing investors with above average capital
    growth and increasing real income through investing in a wide spread of
    investment companies and other securities, which is managed by Consistent Unit
    Trust Management Company Ltd, currently a wholly-owned subsidiary of LSLI;  or
    (b) realise all or part of their shareholding for cash at the terminal asset
    value ("TAV") under the liquidation. Given the Company's portfolio holdings,
    the TAV is not expected to be less than 2.5 per cent. discount to the net asset
    value on the calculation date for the Reconstruction.

    Any shareholders that hold in excess of 5 per cent. of the voting rights in the
    Company will also have the option to elect for an "in specie" distribution of
    the Company's underlying investments.

    As part of the Reconstruction, certain members of the Ashfield Family and
    certain Directors of the Company have indicated to the Independent Directors of
    LSLI, that they would be interested in purchasing the entire shareholder
    capital of Consistent Unit Trust Management Company Ltd, at a fair market price
    to be agreed.

    Aviva Investors Global Services Limited ("Aviva"), which in its capacity as
    investment manager for certain clients manages 5,651,428 (19.52 per cent.) of
    the Company's ordinary shares (the 'Holding') on such clients' behalf, has
    indicated that it intends to vote in favour of all shareholder resolutions in
    connection with the Reconstruction, should it remain manager of the Holding at
    the time of the relevant shareholder general meetings and it is permitted to
    vote on the resolutions. It is anticipated that the Reconstruction will allow
    Aviva to realise the investment in LSLI at TAV which, given the size of its
    holding it would unlikely to be able to do so by selling its holding in the
    market. Accordingly, it has been agreed that provided it goes ahead
    successfully the costs of implementing the Reconstruction up to an agreed cap
    will be met by the respective funds of the underlying clients. In the event
    that the TAV's discount to net asset value is more than 2.5 per cent., an
    amount representing such excess shall be deducted from such costs and be paid
    by the Company and not from the client funds.

    The Practical Investment Fund, which owns 1,590,000 shares in LSLI, has
    indicated to the Board of LSLI, that it intends to elect for an "in specie"
    distribution under the Reconstruction.

    Any transactions between LSLI and the Ashfield Family, Directors of the Company
    and/or Aviva will constitute related party transactions for the purpose of the
    Listing Rules and as such will need to be approved by way of a vote of
    independent shareholders.

    It is expected that a shareholder circular and notices of general meetings
    setting out the full details of the Reconstruction will be sent to shareholders
    in due course. The Reconstruction is subject to the necessary regulatory
    approvals and HMRC tax clearance.

    Enquiries

    London & St Lawrence Investment Company PLC

    Sean Ashfield                                               [phone]

    Jenny Sculley                               [phone]

    Cenkos Securities plc

    Sapna Shah                                 [phone]

    Shamus Henderson                   [phone]

    Francesc Garcia-Uriel                [phone]

    This announcement contains inside information for the purposes of article 7 of
    the Market Abuse Regulation (EU/596/2014).