Tender Offer
April 09 2003 - 7:23AM
UK Regulatory
RNS Number:8153J
Thompson Clive Investments PLC
09 April 2003
Thompson Clive Investments plc
Tender Offer
The Board of Thompson Clive Investments plc announces that it has today posted a
circular to shareholders in relation to a return of up to #5 million to
Shareholders by way of a tender offer at net asset value.
Introduction
The Board announced with the preliminary results for the year ended 31 December
2002 which were published on 26 March 2003, a Tender Offer to return up to #5
million of capital profits to Shareholders. The Tender Offer forms part of the
ongoing investment policy to maximise value for Shareholders in the prevailing
market circumstances as announced on 28 October 2002.
Shareholders are aware that under the revised portfolio strategy there will be
no new investment in quoted companies and, until June 2003, only very limited
investment in unquoted companies with which there are existing negotiations. The
realisation of both the quoted portfolio by December 2004 and the unquoted
portfolio by December 2007, to the best advantage of shareholders, is now the
principal task of the board. In the course of this process and when sufficient
liquid resources have been accumulated there will be further tender offers.
Prospects for the portfolio are dependent upon market conditions which have
continued to deteriorate.
The Tender Offer
The Board proposes to return up to #5 million to Shareholders by way of a tender
offer at Net Asset Value (less the variable costs and expenses of the Tender
Offer). Shareholders will each be able to elect to tender that proportion of
their existing holding as is represented by their Entitlement under the Tender
Offer, or such lower number as they wish.
The key points of the Tender Offer are as follows:
* the Tender Offer is for up to #5 million;
* Shares will be acquired at the Tender Price, being the unaudited Net Asset
Value per Share, as at the Calculation Date, adjusted for the costs and
expenses of the Tender Offer;
* Shareholders will be entitled to have a pro rata percentage of their
shareholdings repurchased under the Tender Offer, although each
Shareholders' entitlement will not be known until the Tender Price has been
calculated. Shareholders will be able to request such lower amount as they
wish to be repurchased;
* the Tender Offer will require approval by Shareholders at the
Extraordinary General Meeting; and
* for the purposes of illustration and assuming the Resolution is passed by
Shareholders, if the calculations for the Tender Price and the Entitlement
for the Tender Offer had been effected as at 7 April 2003 the Tender Price
would have been #3.947 and the Entitlement would have been equal to
approximately 11.46 per cent. of Shareholders' registered holdings.
Further details of the Tender Offer
Providing the Resolution is passed, up to #5 million will be returned to
Shareholders by way of the Tender Offer. Shareholders (other than certain
Overseas Shareholders) are being invited to tender their Entitlement (or such
lower amount as they so choose) to Cazenove who will, as principal, purchase the
Shares tendered and then sell them to the Company at the Tender Price by way of
an on-market transaction. A summary of the calculation of the Tender Price is
set out below. Those Shares which the Company acquires from Cazenove will be
cancelled on acquisition. All transactions will be carried out on the London
Stock Exchange.
Shareholders will each be allocated a proportion of their holding of Shares
which will be purchased by Cazenove under the Tender Offer. The number of Shares
allocated will depend on the Tender Price, to be determined on the Calculation
Date. For the purposes of illustration, if the Tender Price had been determined
as of 7 April 2003, the Resolution passed and the Tender Offer taken up in full,
the Tender Price would have been #3.947 per Share resulting in an Entitlement
equal to approximately 11.46 per cent. of the Shares registered in each
Shareholder's name on such date. On this illustrative basis, a total of
1,266,717 Shares would have been repurchased and cancelled.
Calculation of the Tender Price
For the purposes of the Tender Offer, the Tender Price payable to Shareholders
in respect of each Share repurchased under the Tender Offer shall be derived
from the unaudited Net Asset Value per Share as at 7 April 2003, amounting to
#3.957 per Share, as adjusted at the Calculation Date.
Adjustments to the 7 April 2003 Net Asset Value will be made to reflect
purchases and sales of investments, currency movements and mid-market values in
respect of listed investments and unlisted investments where significant events
have occurred and after reflecting the costs and expenses of the Tender Offer.
Assuming full take up of the Tender Offer, as at 7 April 2003, the costs of the
Tender Offer would have amounted to #108,000, of which #73,000 would be borne by
all Shareholders and the remainder would be deducted from the adjusted Net Asset
Value attributable to those Shares validly tendered to arrive at the Tender
Price, these costs being the variable costs of the Tender Offer. On the basis of
the Net Asset Value at 7 April 2003 of #3.957, the resulting Tender Price, as at
7 April 2003, would therefore have been #3.947. The Tender Price and the
Entitlement, as at the Calculation Date, will be announced as soon as
practicable after their determination, which the Directors expect to be on 7 May
2003.
Dividend
The board has recommended a final dividend of 11.0 pence per share which,
subject to the Shareholders' approval, will be payable on 6 June 2003 to
Shareholders on the register as at 2 May 2003.
Directors' intentions
The Directors intend to vote in favour of the Resolution in respect of their own
beneficial holdings totalling 503,283 Shares (representing 4.6 per cent. of the
Company's issued share capital). All Directors will be tendering their full
personal allotment in the Tender Offer. The Directors believe that the Tender
Offer represents a significant liquidity event and an opportunity to sell some
of their Shares at no discount and, therefore, believe that it is appropriate
for them to be so tendered.
15.4(d)
EXPECTED TIMETABLE
Latest time and date for receipt of
Tender Forms 3.00pm on 2May 2003
Record Date for Tender Offer Close of business in London on 2 May 2003
Latest time and date for receipt
of Forms of Proxy for the 12.30pm on 4 May 2003
Extraordinary General Meeting
Extraordinary General Meeting 12.30pm on 6 May 2003
(or as soon thereafter as the Annual
General Meeting has been
concluded or adjourned)
Calculate Date for Tender Price Close of business in New York on 6 May 2003
Result of Tender Offer, basis of
Entitlement and Tender Price announced By the close of business on 7 May 2003
Despatch of cheques for Tender Offer
consideration in respect of sold certificated Shares 12 May 2003
CREST accounts credited with Tender Offer consideration and 12 May 2003
any unsold uncertificated Shares
Balance certificates in respect of any unsold certificated by 16 May 2003
Shares despatched
Enquiries:
Colin Clive / Richard Thompson 020 7535 4900
Thompson Clive
Angus Gordon Lennox 020 7588 2828
Cazenove & Co. Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
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