Results of Tender Offer

RNS Number : 7365W

Templeton Emerging Markets IT PLC

16 June 2008

 

FOR IMMEDIATE RELEASE

16 June, 2008

Templeton Emerging Markets Investment Trust PLC

("TEMIT" or the "Company")

RESULTS OF THE TENDER OFFER

The Board announces the result of the Tender Offer which closed on 12 June 2008 and received Shareholder approval at an Extraordinary General Meeting of the Company held on 13 June 2008.

The Strike Price Discount set through the auction is 4 per cent.  

In summary, 48.06 per cent. of TEMIT's Shares were validly tendered at discounts to the Company's NAV per Share on the Calculation Date ranging from 2 to 9.5 per cent.; 22.32 per cent. of TEMIT's Shares were tendered at discounts wider than the Strike Price Discount; and 9.29 per cent. of TEMIT's Shares were tendered at the Strike Price Discount.

Peter Smith, Chairman of the Board of Templeton Emerging Markets Investment Trust PLC commented:

"We are pleased with the successful outcome of the Tender and believe that the strike price discount represents good value for all Shareholders. Those Shareholders who remain invested have received an uplift to NAV per share and those Shareholders who wished to exit all or part of their investment have had the opportunity to do so at an attractive level."

All valid tenders submitted at discounts wider than 4 per cent. will be accepted in full. Valid tenders submitted at the Strike Price Discount of 4 per cent. will be scaled back with approximately 82.6 per cent. of each valid tender at the Strike Price Discount being successful. In total, 30 per cent. of the Company's Shares outstanding on the Tender Closing Date will be repurchased under the Tender. Tenders of Shares at discounts narrower than 4 per cent., the Strike Price Discount, were unsuccessful. 

Payment of the Tender Price due to Shareholders and the nominee of Plan Participants whose tenders under the Tender Offer have been accepted is expected to be despatched (by cheque or by payment through CREST, as appropriate) by end-July 2008. It is expected that an interim distribution from the Tender Pool will be made in the week commencing 23 June 2008.  Depending upon the size of this interim distribution, a second interim distribution may be paid during the first half of July.  However, as described in paragraph 5 of Part 1 of the Circular to Shareholders dated 20 May 2008, the Company reserves the right, if the Board considers it to be in the interests of Shareholders as a whole, to defer the realisation of the Tender Pool assets.

Earlier today, the Company released its regular NAV per Share for the close of business 13 June 2008, calculated before adjusting for the Tender.  This Net Asset Value was £2,176 million, equivalent to 460.40p per Share.

Applying the appropriate adjustments arising from the Tender to this NAV per Share (including the benefit of enhancement of the Strike Price Discount of 4 per cent on Shares that were successfully tendered and adding back expenses relating to the Tender previously charged to TEMIT's NAV per Share) the adjusted post-Tender NAV on Friday 13 June 2008 (the Calculation Date) for Continuing Shareholders was £1,551 million, equivalent to 468.61p per Share.  This is based upon the 330,876,852 Shares that will remain in issue following the implementation of the Tender.

The Company's Net Asset Value was calculated after the close of business on Friday 13 June 2008. This was calculated in accordance with the Company's normal accounting policies. In accordance with the Association of Investment Companies recommendations, the NAV has been calculated based on the total value of underlying assets, including accumulated or accrued income, and using bid price information relating to the underlying assets. The calculation was made after the US close of markets using the latest available closing bid prices in each market of investment.  However, where appropriate, these prices are adjusted to a fair value basis having regard to a range of market triggers and proxies.  There was no material fair value adjustment of the assets for the purposes of this NAV.

Defined terms in this announcement have the same meaning as in the Circular to Shareholders dated 20 May 2008.

Enquiries

Templeton Emerging Markets Investment Trust PLC:                                                                                              [phone]

Sara MacIntosh

ING Corporate Finance (Financial Adviser):                                                                                                                 [phone]

William Marle

Francis Moore

UBS (Corporate Broker):                                                                                                                                                  [phone]

Joe Winkley

Lansons:                                    

Tony Langham                                                                                                                                                                      [phone]

David Masters                                                                                                                                                                      [phone]

This announcement has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000 by ING Corporate Finance, the corporate finance division of ING Bank N.V., London Branch, and UBS Limited.

ING Corporate Finance and UBS are acting exclusively for the Company and no one else in relation to the matters described in this announcement and will not be responsible to anyone other than TEMIT for providing the protections afforded to clients of ING Corporate Finance and UBS or for giving advice in relation to this announcement or any transaction or arrangement referred to herein. ING Bank N.V., London Branch is authorised by the Dutch Central Bank. UBS is authorised by the Financial Services Authority. ING Bank N.V., London Branch, and UBS Limited are regulated by the Financial Services Authority for the conduct of business in the United Kingdom.

This announcement does not constitute an offer or form any part of any offer or invitation to sell or issue or purchase or subscribe for any shares in TEMIT.

 

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