NOT FOR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC
OF IRELAND OR SOUTH AFRICA
OR TO U.S. PERSONS
Weiss Korea
Opportunity Fund Ltd.
("Weiss Korea" or "the Company")
Results of
Realisation Opportunity
As described in the circular to Shareholders published on
20 March 2017, the Company made
available a Realisation Opportunity enabling Shareholders to elect
to realise all or a part of their shareholding on or prior to the
fourth anniversary of the Company’s admission to AIM.
The Company today confirms that valid elections have been
received from Shareholders totalling 8,044,769 Ordinary Shares,
representing approximately 8.6 per cent. of the Company’s issued
share capital, and such participating Ordinary Shares have been
redesignated as Realisation Shares.
None of the Directors and personnel associated with the
Investment Manager elected to participate in the Realisation
Opportunity in respect of all or any part of their respective
shareholdings, and of the elections received in connection with the
Realisation Opportunity, 86 per cent. was represented by a single
shareholder.
With effect from today, the Realisation Date, the Company’s
current portfolio has been divided into two pools:
i) The Continuation
Pool; and
ii) The Realisation
Pool.
Each Pool will be accounted for as a separate sub-portfolio,
with assets and liabilities comprised in the Company’s current
portfolio being apportioned to the Realisation Pool pro rata to the
number of participating Ordinary Shares in respect of which
Realisation Elections have been validly received. Those
assets in the current portfolio that are not divisible pro rata due
to their nature have been apportioned between the Pools as the
Board in its sole discretion deems fair and reasonable.
The assets comprising the Realisation Pool will be managed by
the Investment Manager as follows:
a) assets comprised in the Realisation Pool will be
managed in accordance with an orderly realisation programme with
the aim of making progressive returns of cash to holders of
Realisation Shares; and
b) the Board may authorise the sale of assets to the
Continuation Pool from the Realisation Pool in order to return cash
to holders of Realisation Shares.
The assets apportioned to the Continuation Pool will continue to
be managed by the Investment Manager in accordance with the
Company’s investment policy.
Further announcements in respect of the returns of cash to
holders of Realisation Shares will be made as and when appropriate.
In particular, and as set out in the circular to Shareholders,
holders of Realisation Shares should note that it is difficult to
estimate how long it will take to sell all of the assets comprising
the Realisation Pool and distribute cash to Shareholders holding
Realisation Shares. The Realisation Shares will not be listed
or admitted to AIM.
Defined terms in this announcement shall have the same meaning
as terms defined in the circular dated 20
March 2017.
This announcement contains inside information.
Norman Crighton, Chairman of Weiss Korea,
commented:
“The Board and the Investment Manager believe that the
significant continuing interest is consistent with their thesis
about the valuation of Korean preferred shares. As of 28 April 2017, the underlying portfolio had a
weighted average discount to the corresponding common shares of 39%
and a price to earnings ratio of only 8.3x, which the Board and
Investment Manager believe offer continuing investors a compelling
long-term investment opportunity. In addition to the
Realisation Opportunity, the Company has previously repurchased a
cumulative 10.6% of the original shares outstanding as part of the
Company’s discount management and remains committed to
the highest standards of corporate governance.”
For further information, please contact:
N+1 Singer
James Maxwell/ Gillian Martin – Nomad
James Waterlow – Sales |
+44 20 7496 3000 |
Northern Trust
International Fund
Administration Services (Guernsey) Limited
Sam Walden |
+44 1481 745 323 |
Website
www.weisskoreaopportunityfund.com