RNS Number : 6275E
RAB Capital plc
30 September 2008
RAB Capital plc
("RAB" or "the Group")
Restructuring of the RAB Special Situations strategy
RAB Capital plc is pleased to announce that investors in the Cayman-based RAB Special
Situations Fund Limited and the Delaware-based
Special Sits LP have voted by a considerable margin to approve a three year lock-up.
The effect of the restructuring is to ensure the long-term stability of the strategy so as
to provide a better prospect for the
generation of value in the underlying investments. As of 25 September
2008, assets under management in the Special Situations strategy were estimated to be $790
million.
The total assets under management of the Group as of 25 September 2008 were estimated to
be $4.2 billion.
In a separate initiative, RAB is moving to divisionalise its business, both to provide
better clarity on its product offering, and in
response to investor requests for greater segregation between its products. As a first step
towards this the Group intends to vest the
management of its Northwest products into a separate management company ("Newco") which will
be managed directly by George Philips and David
Rogers, who will own 49% of Newco. Under the plan Newco will be a separate regulated entity,
but with RAB holding 51% and continuing to be
represented at Board level. As at 25 September 2008 the RAB-Northwest funds represented 15%
of total RAB assets under management. The new
arrangements, which are subject to regulatory approval, do not result in a material difference
to RAB's economic interest in the Northwest
business.
Stephen Couttie, RAB Chief Executive, said:
"We are grateful that investors in RAB Special Situations have given strong support for
the restructuring proposal. The three year
lock-up is the best way to secure value from their investments."
"The Northwest team have developed a strong brand in their own right and the product has
remained distinct from RAB's offering since
their acquisition in 2006. The Board anticipates that these proposals will provide a more
logical framework from which George and David can
continue to develop the business."
Enquiries:
RAB Capital plc
Marc Popiolek 020 7389 7116
Tulchan Communications
David Trenchard/Andrew Honnor 020 7353 4200
Nominated Advisor: KBC Peel Hunt
Jonathan Marren 020 7418 8900
This information is provided by RNS
The company news service from the London Stock Exchange
END
STREANNNAEAPEFE
|