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.”