Aberdeen Private Equity Fund Ltd Strategic Update (6674Z)
December 18 2017 - 7:45AM
UK Regulatory
TIDMAPEF
RNS Number : 6674Z
Aberdeen Private Equity Fund Ltd
18 December 2017
18 December 2017
Aberdeen Private Equity Fund Limited (the "Company")
Strategic Update
Following consultation with the Company's largest shareholders
and an extensive process to identify potential purchasers, the
Board announces that the Company has entered into a Sale and
Purchase Agreement (the "SPA") to sell its entire investment
portfolio at a modest premium to its 31 October 2017 valuation, net
of associated sale costs.
Background
In the course of engagement with the Company's shareholders
following the AGM in September, it has become clear that a
substantial majority, representing approximately 69% of the issued
share capital, no longer wish to remain invested. The Board
understands that the reasons include variously a change in certain
shareholders' investment objectives, the discount to net asset
value at which the Company's shares have traded, the Company's size
and limited liquidity.
In order to meet the aspirations of shareholders who wish to
realise their shares at the best possible price, the Board
commissioned Campbell Lutyens, a specialist in the restructuring of
private equity portfolios, to ascertain potential secondary market
interest for the Company's investment portfolio. Pursuant to that
process, proposals were received from a number of interested
parties and it was determined that the highest bid was the most
attractive option.
Investment portfolio sale and return of capital
The proposed sale is subject to a number of conditions contained
within the SPA, including, but not limited to, shareholders
approving a change in the Company's investment policy to that of a
divestment policy to enable a sale of the entire portfolio to be
made. Under the SPA, Aberdeen Standard Investments will enter into
a new investment management agreement with the purchaser to manage
a portion of the portfolio, which includes the Company's
co-investment assets. It is intended that following completion of
the sale and the capital return to shareholders, the Company will
be placed in liquidation.
It is expected that the bulk, if not all, of the proceeds from
the sale will be received in one tranche on or soon after 31 March
2018, and it is the Board's intention to return capital to
shareholders as and when proceeds are received. It is estimated
currently that the total return to shareholders will be close to
net asset value as at 31 October 2017, however the proceeds
received from the purchaser and the final shareholder return will
be subject to various factors including, but not limited to,
foreign exchange fluctuations and liquidation costs.
The Company will issue a circular in early 2018 to convene an
extraordinary general meeting ("EGM") to approve, inter alia, the
change of investment policy, the mechanism for shareholder returns
and to provide further details, including the expected timescale
for the return of capital to shareholders. Shareholders
representing 69 per cent. of the Company have given irrevocable
undertakings to vote in favour of the resolutions at the EGM.
For further information, please contact:
William Hemmings
Aberdeen Fund Managers Limited
020 7463 6000
Henry Freeman / Gillian Martin
Liberum
020 3100 2000
This announcement contains inside information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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