Altin AG Transaction in Own Shares
January 20 2015 - 12:30PM
UK Regulatory
TIDMAIA
ALTIN - Issuance of tradable put options
Baar, 20 January 2015 - The Board of Directors of ALTIN AG (SIX:
ALTN, LSE: AIA), the Swiss alternative investment company, has
decided, in line with the media release of 15 January 2014, to
implement a further share buyback for the purpose of a capital
reduction through the issuance of tradable put options. The put
options will be assigned for free to all shareholders with a strike
price set at an attractive premium to the market price.
Strong commitment to reduce the discount in a sustainable
way
ALTIN's Board of Directors reaffirms its strong commitment to
better align the share price of the company with its NAV and hence
to reduce the discount in the best interest of all shareholders. As
stated in January 2014, the key element for investors is simply the
share price performance over the medium term. As the share price
performance in 2014, albeit by a very narrow margin, did not
achieve the stated target, a capital reduction of up to 10% will be
undertaken as quickly as technically feasible.
The Board reiterates its commitment to implement further capital
buybacks at the end of any given calendar year during which the
share price may have failed to appreciate by less than 10% to 12%,
whilst the discount to NAV remains at significant levels. The Board
remains of the opinion that further capital reductions will be far
more effective if used as a mechanism to compensate investors
during periods of lower share price appreciation, rather than as an
indiscriminate discount reduction instrument. By boosting share
price performance and transferring intrinsic value to shareholders,
these capital reductions should prove an effective compensatory
measure.
2014 was a positive year for the company
The ALTIN share price appreciated by 8.6% and 10.2% on the SIX
Swiss Exchange and London Stock Exchange respectively. The share
price performance was underpinned by an NAV that, on estimated
numbers to the end of December 2014, grew by about 5.8% and by a
further narrowing of the discount. The NAV performance is close to
the stated target and meaningfully ahead of hedge fund indices and
Fund of Fund peers. The strategic repositioning of the portfolio in
2013, which has allowed the fund to exploit the significant
advantage offered by its permanent capital base, is continuing to
bear fruits.
Tradable put options remain the best solution
Buying back shares through tradable put options continues to
offer several advantages over the conventional buyback on a second
trading line on the SIX Swiss Exchange. Firstly, given the strong
limitations on the daily buyback volume, a put options solution
allows for a much faster capital reduction process. Secondly, as
the strike price will be set at an attractive premium to the market
price, the put options benefits will be clear to all shareholders.
This solution provides an equal treatment of all investors, since
shareholders can directly or indirectly participate in the buyback
plan.
Timing and strike price
The Board intends to implement the share buyback as rapidly as
technically possible. A further press release will be issued in due
course to announce the timing, strike price and other technical
aspects. However at this stage the Board reminds shareholders that
they will be in a position to either tender ALTIN shares at a fixed
strike price via the exercise of their put options, or, since the
puts are freely tradable during a limited time period, sell them in
the market.
The Board of Directors will determine a strike price at a level
that better reflects its understanding of a fair valuation of the
company, making the tendering of the shares attractive and, at the
same time, ensuring that the put options will have intrinsic value.
Tendered shares will then be cancelled after AGM approval, which
will result in the intended capital reduction as well as NAV per
share accretion.
For further information, please contact:
Tony Morrongiello - Chief Executive Officer Kinlan Communications
Tel. +41 (0)41 760 62 60 David Hothersall
Tel. +44 (0)20 7638 3435
info@altin.ch davidh@kinlan.net
Note to Editors
About ALTIN AG
ALTIN AG was launched in 1996 and is listed on the SIX Swiss
Exchange as well as on the London Stock Exchange. It ranks among
Switzerland's leading alternative investment companies. Currently,
ALTIN is invested in more than 40 hedge funds representing diverse
investment strategies. Its objective is to generate an absolute
compound annual return in USD terms with lower volatility than
equity markets. Owing to these characteristics and a low
correlation with equity markets, ALTIN shares provide an ideal
complement for all diversified portfolios.
www.altin.ch
This information is provided by Business Wire
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