AIA Altin Reg

 
TIDMAIA 
 
 

ALTIN: Planned share buyback will be implemented through tradable put options

 
 
    -- Free tradable put options with an attractive premium to be issued 

to all shareholders

 
    -- A swift solution to return capital to shareholders 
 
    -- Board of Directors strongly committed to reducing the discount 
 

Baar, 18 July 2013 - The Board of Directors of ALTIN AG (SIX: ALTN, LSE: AIA), the Swiss alternative investment company, has decided after careful consideration to implement the capital reduction programme announced in March 2013 through the issuance of free, tradable put options. The put options will be assigned to all shareholders with a strike price set at an attractive premium to the market price.

Strong commitment to reduce the discount in a sustainable way

With this innovative action, ALTIN's Board of Directors reaffirms its strong commitment to better align the share price of the company with its NAV and hence to reduce the discount in the best interest of all shareholders. The Board intends to take all necessary measures to achieve this goal in a sustainable way that benefits all shareholders.

Announced buyback programme will be implemented via the issuance of put options

As a result of the recent amendments to Switzerland's stock exchange regulations, a share buyback conducted through a traditional second trading line has become very ineffective for ALTIN. Indeed, as of 1 May 2013, daily share buybacks are now limited to 25% of the daily average trading volume. Given the situation encountered by ALTIN, a buyback programme could have lasted up to 2 years in order to buy back the maximum permissible 10% of its share capital. The Board announced on 10 June 2013 that it was therefore looking for more effective alternatives to reduce the share price discount.

After a thorough and careful review of the available buyback methods, the Board of Directors has decided to implement the capital reduction through the issuance of free, tradable put options. Shareholders will either tender ALTIN shares at a fixed strike price during a limited time period via the exercise of their put options, or, since the puts are freely tradable, sell them in the market. The Board of Directors will determine a strike price at a level that better reflects its understanding of a fair valuation of the company, making the tendering of the shares very attractive and, at the same time, ensuring that the put options will have a significant intrinsic value. Similar to a share buyback through a second line trading, tendered shares will then be cancelled after AGM approval, which will result in the intended capital reduction as well as NAV per share accretion.

Tradable put options are the best solution

Buying back shares through tradable put options offers several advantages over the conventional buyback on a second trading line. Firstly, given the strong limitations on the daily buyback volume introduced by the new regulations, a put options solution allows for a much faster capital reduction process (2-4 weeks compared with 24 months). Secondly, as the strike price will be set at an attractive premium to the market price, the put options benefits will be clear to all shareholders. The Board of Directors expects a high exercise ratio and is confident that this solution is simple and ensures that all shareholders can directly participate. This solution provides an equal treatment of all investors, since all shareholders can directly or indirectly participate in the buyback plan.

Issuance planned for mid-September

The issuance of the put options should take place in mid-September but the exact date will be confirmed at a later stage, together with all the necessary technical details (e.g. exercise period, options per share ratio, strike price, trading details).

This time frame has been decided in part for technical reasons (regulatory approval by the Takeover Board and Swiss Stock Exchange, appointment of the investment bank), which are expected to take about a month, but mainly to avoid the European holiday season and thus to ensure that all shareholders are informed and in a position to participate in the buyback.

For further information, please contact:

 
Tony Morrongiello - Chief Executive Officer   Kinlan Communications 
Jose Galeano - Investor Relations Manager     David Hothersall 
Tel. +41 (0) 41 760 62 60                     Tel. +44 (0)20 7638 3435 
info@altin.ch                                 davidh@kinlan.net 
 
 

Note to Editors

About ALTIN AG

ALTIN AG was launched in 1996 and is listed on the SIX Swiss Exchange as well as on the London Stock Exchange. It ranks among Switzerland's leading alternative investment companies. Currently, ALTIN is invested in more than 30 hedge funds representing diverse investment strategies. Its objective is to generate an absolute compound annual return in USD terms with lower volatility than equity markets. Owing to these characteristics and a low correlation with equity markets, ALTIN shares provide an ideal complement for all diversified portfolios.

ALTIN is managed by Alternative Asset Advisors SA, a management firm specializing in alternative investments and a member of the SYZ & CO Group.

www.altin.ch

 
 
 
This information is provided by Business Wire 
 
 

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