Burford Capital Limited Supreme Ct Hearing Denial, Petersen Interests Sale (2309D)
June 24 2019 - 9:37AM
UK Regulatory
TIDMBUR
RNS Number : 2309D
Burford Capital Limited
24 June 2019
This announcement contains inside information.
24 June 2019
US SUPREME COURT DENIES PETERSEN HEARING, FURTHER BURFORD SALE
OF PETERSEN INTERESTS
Sale of 10% of Petersen entitlement yields $100 million at an
implied $1 billion valuation
Burford Capital Limited ("Burford Capital" or "Burford" or "the
Company"), the leading global finance and investment management
firm focused on law, announces that the US Supreme Court has
declined to hear Argentina's and YPF's appeals in the Petersen
case, with the result that the lower court decisions finding
jurisdiction for Petersen's claims in the US are now final. The
Petersen case will now return to the trial court for merits
proceedings. This continues an unbroken string of victories for the
Petersen case in the courts. While we are pleased with this
decision, it is important to emphasise that this decision relates
purely to a preliminary jurisdictional question and does not
foreshadow any particular result in the underlying litigation.
Although the Supreme Court's decision is a matter of public
record, Burford has issued this announcement as a matter of
convenience. However, Burford does not intend to regularly issue
such releases for other interlocutory steps in the proceedings, of
which there are likely to be many before a final resolution.
Burford also announces that it has sold a further 10% of its
entitlement in the Petersen matter into the secondary market it has
been developing, leaving Burford with 61.25% of its original
entitlement. The sale price was $100 million, implying a value of
$1 billion for Burford's entire original Petersen entitlement.
Burford has now generated $236 million in proceeds from Petersen
sales. As the market value of the Petersen matter has continued to
rise (and as Burford also has further exposure to YPF-related
claims through the Company's investment in the parallel Eton Park
matter), reducing Burford's total holding and locking in
significant profits represents prudent portfolio management.
However, Burford has committed always to hold at least 50.1% of its
original economic entitlement in the Petersen matter. The sale was
to 11 institutional investors and was significantly
over-subscribed. Including prior purchasers, there are now
approximately 40 institutional investors participating in the
Petersen secondary market.
Burford will consider the impact of the Supreme Court's decision
and further secondary market trading activity as part of its
investment valuation process for the six months ended 30 June 2019.
Our valuation process is discussed in detail in our annual
reports.
The person responsible for arranging for the release of this
announcement on behalf of the Company is Elizabeth O'Connell, Chief
Financial Officer.
For further information, please contact:
Burford Capital Limited
Elizabeth O'Connell, CFA, Chief Financial Officer +1 212 235 6825
Macquarie Capital (Europe) Limited - NOMAD +44 (0)20 3037
and Joint Broker 2000
Jonny Allison
Nicholas Harland
+44 (0)20 3100
Liberum Capital Limited - Joint Broker 2222
Richard Crawley
Jamie Richards
+44 (0)20 7260
Numis Securities Limited - Joint Broker 1000
Charlie Farquhar
Jonathan Abbott
Montfort Communications Limited - Financial +44 (0)20 3770
Communications 7908
Robert Bailhache - email
About Burford Capital
Burford Capital is the leading global finance and investment
management firm focused on law. Its businesses include litigation
finance and risk management, asset recovery and a wide range of
legal finance and advisory activities. Burford is publicly traded
on the London Stock Exchange, and it works with law firms and
clients around the world from its principal offices in New York,
London, Chicago, Washington, Singapore and Sydney.
For more information about Burford: www.burfordcapital.com
This release does not constitute an offer of any Burford fund.
Burford Capital Investment Management LLC ("BCIM"), which acts as
the fund manager of all Burford funds, is registered as an
investment adviser with the U.S. Securities and Exchange
Commission. The information provided herein is for informational
purposes only. Past performance is not indicative of future
results. The information contained herein is not, and should not be
construed as, an offer to sell or the solicitation of an offer to
buy any securities (including, without limitation, interests or
shares in the funds). Any such offer or solicitation may be made
only by means of a final confidential Private Placement Memorandum
and other offering documents.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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