CAEL Cazenove AB.

TIDMCAEL

RNS Number : 3231D

Cazenove Absolute Equity Limited

14 May 2012

Cazenove Absolute Equity Limited

14 May 2012

Proposals regarding the future of the fund

*** THIS ANNOUNCEMENT SUPERSEDES RNS NUMBER 3031D RELEASED EARLIER TODAY ***

Last year the Board set out within the notice of the 2011 Annual General Meeting ('2011 AGM') proposals which included an amendment to the investment policy and the introduction of future discretionary tender offers with the overall objective of improving the marketability of the fund thereby reducing the discount at which the fund's shares trade relative to the net asset value. At the 2011 AGM shareholders approved the adoption of these proposals together with the continuation of the fund.

While the implementation of these proposals and the ongoing delivery of consistent returns with low levels of volatility in line with the stated investment objective have caused the discount to narrow, the fund has continued to trade at a discount persistently wider than that which the Board believes to be acceptable. It is in this context and having consulted with shareholders that the Board intends to bring forward proposals at the 2012 AGM regarding the continuation of the company.

In accordance with the articles the Board is required to put forward to the forthcoming AGM an ordinary resolution that the company should continue as an investment company. It is currently the Board's intention to recommend that shareholders vote against continuation and, subject to such resolution being defeated, to vote in favour of managed winding up proposals which will be put to the same meeting.

The winding up proposals will remove all existing obligations to propose continuation votes and tender offers which will instead be replaced with an objective of making two equal cash distributions to shareholders based on the end July and end October net asset values (less applicable costs and liquidation retention) following which the fund will be placed into liquidation.

The Board is currently exploring, with its advisers, the ability to offer as an alternative to cash distributions the ability for shareholders to elect to receive value through a tax-efficient rollover into one of the underlying investments held by the fund. In the event that this option is made available, which is subject to both tax and regulatory considerations as well as anticipated demand from shareholders, the Board anticipates that it could be possible to simplify the managed winding up to a single cash and in specie distribution which would be based on the end July net asset value (less applicable costs and liquidation retention).

Based on the details set out in this announcement shareholders representing approximately 60 per cent. of the issued share capital have confirmed that they would follow the Board's recommendation by voting against continuation of the fund and voting in favour of the managed winding up proposals.

It is currently envisaged that a circular to shareholders setting out the notice of the 2012 AGM and including the continuation vote and the winding up proposals will be sent out in June. A full announcement setting out details of the proposals noted above will be made at that time.

Enquiries:

Corporate Broker

David Benda

Numis Securities Limited

Tel: 020 7260 1000

Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Limited

Tel: 01481 745381

This information is provided by RNS

The company news service from the London Stock Exchange

END

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