I don't own any at the moment but I still keep an eye on them, I...

I don't own any at the moment but I still keep an eye on them, I think it's a terrible decision and will set a bad precedent.

One of the supposed benefits of an LIC is that they have a fixed pool of capital and don't have to buy/sell based on when their investors are entering/exciting as a managed fund does. They haven't said how they're going to get the money to buy the funds out but you would assume it will be by selling some of their holdings, ie they are going to be a forced seller rather than selling for good investment reasons.

Based on the weekly NTA if it happened today they would be offering them $1.75 compared to the best a normal shareholder could get of $1.48.

I could see people thinking it would be easier to just mimic their portfolio rather than buy their actual shares.