Internalisation of Management

Ceiba Investments Limited

27 April 2023

 

CEIBA INVESTMENTS LIMITED

(TICKER: CBA, ISIN: GG00BFMDJH11)

Legal Entity Identifier: 213800XGY151JV5B1E88

Internalisation of Management

The Board of CEIBA Investments Limited ("CEIBA" or the "Company") is pleased to announce that Heads of Terms have been agreed with certain group companies of abrdn plc ("abrdn") for CEIBA to internalise the Company's investment management arrangements. 

Sebastiaan Berger, the lead fund manager of CEIBA and a current employee of abrdn, will move to CEIBA as Chief Executive Officer, together with the existing management team (collectively the "Management Team") to ensure continuity of service.

Concurrently, 4K Keys Limited ("4K Keys"), a company owned by the Management Team, that currently provides consulting services to abrdn in connection with the management of CEIBA, will be appointed to provide strategic consulting services in respect of the real estate assets of the Company's subsidiaries aimed at generating positive cash flow for such subsidiaries and cash distributions to CEIBA and its shareholders.

There will be no change to the Board of Directors of the Company as a result of the internalisation.

Following the completion of the internalisation process, CEIBA will become a self-managed alternative investment fund. Subject to contract, the internalisation is expected to become effective on 30 June 2023.

John Herring, Chairman of CEIBA, said "The Board has concluded that internalising the Company's investment management is in the best interests of shareholders as it will substantially reduce the operating costs of the Company. The retention of the current  Management Team provides continuity of knowledge and experience alongside the non-executive Board.  On behalf of the Board of CEIBA, I would like to thank the team at abrdn for their support over the last 5 years and look forward to the next stage in CEIBA's development."

Neil Slater, Global Head of Real Assets at abrdn commented, "abrdn has been involved with CEIBA as manager and shareholder since its London listing in 2018.  We have a large and successful real estate team managing many mandates where our research and process can deliver greater value to clients. CEIBA invests in a specialist area of the market where our approach is less able to add value, so we believe it is in shareholders' best interest for CEIBA to focus on cost-savings and for the internalisation to occur. We fully support this and remain significant shareholders in the Company. We have had constructive discussions with the Board and Management Team of CEIBA to facilitate the internalisation and we wish them well."

Sebastiaan Berger, lead fund manager of CEIBA, stated, "While the geo-political backdrop for the Company over the last five years has been very challenging, the return of tourism to Cuba and the easing of U.S. sanctions means that the prospect of healthy future income streams (in particular once Cuba's economy and liquidity position improve) in combination with the substantial cost reduction that is being achieved by the internalisation of management is good news for the Company and its stakeholders. The Management Team of CEIBA is fully committed and aligned to work towards the Company's success."   

Contacts:

Evan Bruce-Gardyne

abrdn plc

Tel : [phone]

James Maxwell/James Waterlow

Singer Capital Markets

Tel : [phone]

Important Information

This information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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