AIA Altin Reg

 
TIDMAIA 
 
 

ALTIN: Terms of the issuance of put options

 
 
    -- Strike price to be set at a 20% premium over share price 
 
    -- Put options provide clear benefits to all shareholders 
 
    -- Share price is up +13.4% YTD, while NAV increased +4.8%1 
 

Baar, 2 September 2013 - The Board of Directors of ALTIN AG (SIX: ALTN, LSE: AIA) has disclosed today the main terms of the issuance of put options announced on 18 July 2013. The final strike price will be determined on 9 September 2013, indicatively at a 20% premium over the then prevailing share price, but not higher that the NAV. The solution chosen by the Board of Directors presents a double advantage for shareholders: a significant cash premium and an automatic increase of the NAV per share, as tended shares will ultimately be cancelled. Thanks to ALTIN's good investment performance and to the discount reduction measures put in place by the Board, the share price has already increased by +13.4% in 2013, while the NAV rose by +4.8%1.

Specifications of the issuance of put options

The strike price of the put options will be determined on 9 September 2013, indicatively at a 20% premium over the prevailing share price at that date, but not higher than the NAV per share. The put options will be issued on 13 September 2013 (ex date). Each share will receive 1 option and 10 options will entitle the holder to exercise 1 share at the exercise price (strike price). The exercise period will end on 27 September 2013. The put options will be traded in USD on the SIX Swiss Exchange from 13 September to 26 September 2013, thus allowing investors to sell their options or to buy more options in order to tender more shares. The results of the share buyback will be announced on 27 September 2013. Tendered shares will be cancelled after AGM approval and, if all options are exercised as expected, this will effectively result in a 10% capital reduction.

Several benefits for shareholders

The issuance of these put options presents several benefits to shareholders. First, shareholders will receive tradable options with a significant intrinsic value. By selling or exercising them, shareholders will thus immediately receive a cash premium. Second, thanks to the 10% capital reduction, the NAV per share will automatically increase. As the exercise period is short, the benefits for all shareholders will appear clearly and the impact on the discount should take place rapidly.

Positive effect of discount reduction measures on share price already visible

Thanks to the different discount reductions measures taken by the Board of Directors, the discount has already diminished from 32.64% at end 2012 to 27.07% today1. As a consequence and thanks to the solid investment performance achieved YTD (+4.8%1), the share price is up +13.4% this year1.

Continued commitment of the Board to reduce the discount in the long term

ALTIN's Board of Directors reaffirms its strong commitment to find efficient and sustainable ways 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. If necessary, the Board may decide to further reduce capital through similar share buybacks.

Selling vs. exercising the put options

Shareholders should check their tax status before opting between selling the put options and exercising them. Due to the Swiss Federal withholding tax of 35% that will be deducted from the difference between the buyback price and the par value of the shares2, it is expected that investors who cannot fully recover this withholding tax (i.e. most investors except Swiss institutional investors) will prefer to sell the put options on the market rather than exercising them.

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.

www.altin.ch

1 Based on the SIX share price as at 30.08.2013 and on the NAV per share as at 23.08.2013 (estimate).

2 Par value: CHF 17 per share.

 
 
This information is provided by Business Wire 
 
 

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