Life Settlement Assets PLC Return of Capital (8889Y)
14 May 2019 - 4:00PM
UK Regulatory
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RNS Number : 8889Y
Life Settlement Assets PLC
14 May 2019
Life Settlement Assets PLC
LEI: 2138003OL2VBXWG1BZ27
(the "Company" or "LSA")
Return of capital
The Company's announcement of results on 30(th) April 2019
explained that, in light of the very sizeable maturities notified
since the year end, the Board was considering the most efficient
way to return value to shareholders, once the proceeds from the
policies had been collected and the requisite shareholder approvals
had been obtained. The Board is, accordingly, pleased to announce
that the bulk of the expected proceeds have been received and,
conditional upon certain shareholder and court approvals, its
proposals for the return of capital to A, D and E Ordinary
Shareholders. The return of capital will be structured as
follows:
- for A Ordinary Shareholders, a special dividend totalling
US$2.5 million and a tender offer of up to US$10 million to be
initiated after the payment of the special dividend, in each case
to be financed out of distributable reserves created by the
cancellation of the share premium account. The tender offer is
expected to be priced at US $1.80 per A Ordinary Share and will be
made available pro rata to eligible A Ordinary Shareholders with a
facility to make excess applications to the extent that other A
Ordinary Shareholders do not take up their entitlements. The terms
of the tender offer will enable A Ordinary Shareholders as a whole
to tender up to approximately 12.2 per cent of the outstanding A
Ordinary Shares;
- for D Ordinary Shareholders, a special dividend totalling
US$3.5 million and a share buyback programme of up to a maximum of
US$0.5 million, in each case to be financed out of distributable
reserves created on the cancellation of the share premium account;
and
- for E Ordinary Shareholders, a special dividend totalling
US$4.5 million to be paid and a share buyback programme of up to a
maximum of US$0.5 million in each case to be financed out of
distributable reserves created on the cancellation of the share
premium account.
The amounts to be returned have been determined by the Board
based on the cash available to each Share Class and taking into
account the premium commitments required to preserve each Share
Class's portfolio of policies and the uncertain timing and extent
of future maturity receipts. In selecting the most appropriate
methods to return cash to the A Ordinary shareholders, the Board
has sought to balance the interests of selling and continuing
shareholders by offering a combination of tender offer and
dividend. In the case of the D and E Share Classes, the Board
decided to return cash principally by dividend given the narrow
ownership of these share classes; the relatively small share
buy-back programme has been included to provide some stock market
liquidity."
A circular to Shareholders containing details of the tender
offer and notice of the necessary shareholder and A Ordinary Share
class meeting will be posted in due course. A further announcement
will also be issued in due course giving details of the timings for
the various special dividend payments and associated record
date.
Jean Medernach, Chairman of Life Settlement Assets said:
"I am very pleased to announce that subject to certain
shareholder and court approvals, we will be able to return capital
and make our maiden distribution to A, D and E Ordinary
Shareholders following the very sizable maturities notified post
our year end. As a company previously listed on the Luxembourg
Stock Exchange, we established a strong track record of returning
capital to our shareholders and today's announcement continues this
policy of distributing a substantial portion of the Company's funds
to shareholders whilst maintaining appropriate levels of financial
resources to fund premium payments and re-invest in the business to
ensure continued growth."
Enquiries:
Acheron Capital Limited (Investment Manager)
Jean-Michel Paul
020 7258 5990
Shore Capital (Financial Adviser and Broker)
Robert Finlay
020 7601 6115
Maitland Administration Services Limited (Corporate
Secretary)
George Bayer / Kerry Higgins
Tel: 01245 209780
TB Cardew (Financial PR)
Shan Shan Willenbrock
020 7930 0777
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END
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