BlackRock Emerging Europe Liquidation and Rollover
17 August 2018 - 4:00PM
UK Regulatory
TIDMBEEP
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN OR INTO, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF
SOUTH AFRICA AND THE UNITED STATES OR ANY OTHER JURISDICTION WHERE TO DO SO MAY
RESULT IN THE CONTRAVENTION OF ANY REGISTRATION OR OTHER LEGAL REQUIREMENT OF
SUCH JURISDICTION
17 August 2018
BlackRock Emerging Europe plc
(LEI: 549300OGTQA24Y3KMI14)
Liquidation and Rollover
BlackRock Emerging Europe plc ("BEEP" or the "Company") announced on 14 June
2018 that the proposed tender offer to BEEP's shareholders would result in the
remaining assets of the Company being below the minimum level which the Board
deemed necessary for the Company to continue. The Board therefore elected not
to proceed with the tender offer and confirmed that revised proposals would be
put to shareholders, which would include the option of a full cash exit.
The Board of BEEP has undertaken a review of the options available to the
Company and today announces that it intends to put forward proposals to put the
Company into voluntary liquidation and to offer shareholders the option of
electing for any combination of:
* receiving cash at net asset value less costs; and
* rolling their investment into new C shares to be issued by BlackRock
Frontiers Investment Trust plc ("BRFI").
The costs incurred by BRFI in connection with the proposals will be deducted
from the C share pool. BlackRock has agreed to meet any costs exceeding 1 per
cent. of the value of the C share pool such that the opening NAV of the C
shares will be not less than 99 pence per C share. It is expected that the C
shares will be converted into ordinary shares in BRFI on a NAV for NAV basis
once the C share portfolio has been substantially invested in accordance with
BRFI's investment policy.
BRFI is a closed-ended investment trust that seeks to achieve long term capital
growth by investing in companies domiciled or listed in, or exercising the
predominant part of their economic activity in, less developed countries. These
countries are those which are neither part of the MSCI World Index of developed
markets nor one of the eight largest countries by market capitalisation in the
MSCI Emerging Markets Index as at 1 April 2018 (being Brazil, China, India,
Korea, Mexico, Russia, South Africa, and Taiwan). Sam Vecht, the co-portfolio
manager of BEEP, is also the co-portfolio manager of BRFI, alongside Emily
Fletcher, a highly-rated investment management team. BRFI shares have traded at
an average premium to net asset value of 3.18 per cent. over the last 12
months.
The proposals will provide BEEP shareholders with the ability to elect to
rollover some or all of their interests into BRFI in order to enable them to
maintain some or all of their exposure to a strategy managed by BlackRock's
highly-regarded Emerging Markets team.
The proposals will be effected by way of a scheme of reconstruction of BEEP
under section 110 of the Insolvency Act 1986, resulting in the voluntary
liquidation of BEEP and a rollover of assets of BEEP into BRFI. The transaction
would be subject to approval from shareholders of both BEEP and BRFI.
A circular convening general meetings to seek approval of BEEP shareholders for
the proposals is expected to be sent to BEEP shareholders in due course.
The Company's portfolio will remain fully invested according to its investment
policy until the above proposals have been approved by shareholders at the
relevant General Meeting.
Enquiries:
BlackRock Investment Management (UK) 020 7743 3000
Limited
Simon White
Sarah Beynsberger
020 3100 0000
Winterflood Securities
Neil Langford
Chris Mills
Important information
This announcement contains information that is inside information for the
purposes of the Market Abuse Regulation (EU) No. 596/2014, and is being made by
the Company solely to comply with its regulatory disclosure obligations.
The content of this announcement has been prepared by, and is the sole
responsibility of, BlackRock Emerging Europe plc. The information contained in
this announcement is given at the date of its publication (unless otherwise
marked) and may be subject to updating, revision and amendment from time to
time.
This announcement does not constitute or form part of any offer or invitation
to sell, or any solicitation of any offer to purchase or subscribe for any
shares in the Company nor shall it (or any part of it) or the fact of its
distribution, form the basis of, or be relied on in connection with, any
contract therefore.
Winterflood Securities Limited, which is authorised and regulated by the
Financial Conduct Authority in the United Kingdom, acting through its division,
Winterflood Investment Trusts ("Winterflood"), is acting exclusively for the
Company and no-one else in connection with the proposals set out in this
announcement and will not be responsible to anyone other than the Company for
providing the protections afforded to customers of Winterflood or for providing
advice in relation to the proposals set out in this announcement. Nothing in
this paragraph shall serve to exclude or limit any responsibilities which
Winterflood may have under the FSMA or the regulatory regime established
thereunder.
Apart from the responsibilities and liabilities, if any, which may be imposed
on Winterflood by the FSMA or the regulatory regime established thereunder,
Winterflood accepts no responsibility whatsoever for the contents of this
announcement or for any other statement made or purported to be made by it or
on its behalf in connection with the Company or the proposals set out in this
announcement. Winterflood accordingly disclaims all and any liability whether
arising in tort or contract or otherwise (save as referred to above) which it
might otherwise have in respect of this announcement or any such statement.
This announcement contains (or may contain) certain forward-looking statements
with respect to the Company's current expectations and projections about future
events. These statements, which sometimes use, but are not limited to, words
such as 'anticipate', 'believe', 'intend', 'estimate', 'expect' and words of
similar meaning, reflect the Directors' beliefs and expectations and involve a
number of risks, uncertainties and assumptions that could cause actual results
and performance to differ materially from any expected future results or
performance expressed or implied by the forward looking statement. Statements
contained in this announcement regarding past trends or activities should not
be taken as a representation that such trends or activities will continue in
the future. The information contained in this announcement is subject to change
without notice and, except as required by applicable law, neither the Company
nor Winterflood assumes any responsibility or obligation to update publicly or
review any of the forward looking statements contained herein. You should not
place undue reliance on forward-looking statements, which speak only as of the
date of this announcement.
END
(END) Dow Jones Newswires
August 17, 2018 02:00 ET (06:00 GMT)
BLACKROCK EMERGING (LSE:BEEP)
Historical Stock Chart
From Apr 2024 to May 2024
BLACKROCK EMERGING (LSE:BEEP)
Historical Stock Chart
From May 2023 to May 2024