Third Point Offshore Corporate Update
March 01 2018 - 3:19AM
UK Regulatory
TIDMTPOG TIDMTPOU
Third Point Offshore Investors Limited (the "Company")
(a closed-ended investment company incorporated with limited liability under
the laws of
Guernsey with registered number 47161)
LEI: 549300WXTCG65AQ7V644
Corporate Update
1 March 2018
Third Point Offshore Investors Limited - Corporate Update
1 March 2018
The Board of Third Point Offshore Investors Limited ("TPOIL" or the "Company")
is pleased to announce a series of actions to better reflect the strong
risk-adjusted performance of Third Point Offshore Fund, Ltd. (the "Master
Fund") in TPOIL's share price. The Board is committed to maximising
shareholder value and protecting the interests of all TPOIL stakeholders.
TPOIL is a closed-end, London-listed feeder into the Master Fund, the flagship
hedge fund managed by Daniel S. Loeb's Third Point LLC (the "Investment
Manager"). The Master Fund returned +18.1% in 2017, net of fees and expenses.
The TPOIL share price returned +26.3% in 2017 with better results reflecting
the modest leverage the Company enjoys following previous share purchases by
the Master Fund.
The Board has been disappointed by the persistent discount in TPOIL's shares
despite Master Fund performance, a frustration shared by many shareholders.
The Board plans to address this by pursuing amendments to the Company's voting
rights structure that are necessary to permit a transfer from the standard
listing segment of the Official List to the premium listing segment of the
Official List and potential inclusion in the FTSE UK Index Series. At the same
time, the Company plans to propose the conversion of its outstanding Sterling
class of shares into USD shares and the adoption of a Sterling quote alongside
the USD quote. The Board believes that these steps will improve liquidity for
all shareholders, thereby moderating the discount.
The Board has also reviewed the Company's capital allocation policy and
determined that the existing dividend policy is not aligned with the Company's
corporate structure or the Investment Manager's strategy. The Board plans to
stop dividend payments and instead give the Investment Manager authority to
make opportunistic share purchases on behalf of the Master Fund as an
alternative means of future capital return, subject to Board guidance. These
purchases should allow the Company to more effectively manage any discount to
net asset value. The Master Fund has committed not to exercise any voting
rights associated with the purchased shares. Additional information about
these policies is available on the TPOIL website.
TPOIL has developed a new company website designed to make it easier for
investors and prospective investors to learn about the Company and the Master
Fund (www.thirdpointoffshore.com), reflecting the Investment Manager's
commitment to additional transparency for investors. The Investment Manager
has also committed to increasing shareholder engagement and to providing more
detailed reporting and disclosure. The Company plans to make further
announcements about these proposals shortly.
Marc Antoine Autheman, Chairman of Third Point Offshore Investors Limited,
commented: "The Board is fully committed to ensuring that the Company is
best-positioned to deliver long-term value for all shareholders. We believe
TPOIL's transfer to a premium listing and the potential for share purchases by
the Master Fund, alongside improved investor communication, will help improve
the Company's rating, whilst continuing to showcase the Manager's successful
strategy and portfolio."
Daniel S. Loeb, the Investment Manager, said "We are committed to aligning our
strong risk-adjusted returns with a best-in-class corporate structure for
TPOIL's shareholders. We believe the changes announced today will help to
reduce the persistent share discount to NAV."
END
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March 01, 2018 04:19 ET (09:19 GMT)
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