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FRM Diversified Alph (DIVA)

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Monday 21 June, 2010

FRM Diversified Alph

Second Distribution

RNS Number : 9593N
FRM Diversified Alpha Limited
21 June 2010
 



FRM DIVERSIFIED ALPHA LIMITED

(the "Company")

 

REDEMPTION ANNOUNCEMENT

 

21 JUNE 2010

The Company announces that further to the proposals put forward in the Circular filed on 2 June 2009 and approved at the Extraordinary General Meeting held on 29 June 2009, and further to the cash distribution made to Shareholders in September 2009, the Board of Directors has resolved to make a further compulsory redemption of Shares.

 

This resolution has been prompted by the realisation of certain of the Company's underlying investments earlier than expected and the Board's decision that, in accordance with the managed wind-down of the Company, the available cash be returned to Shareholders as soon as reasonably practicable.  

 

The Board has resolved to pay out £9.25 million to Shareholders (representing approximately 44.9 per cent. of the Company's issued share capital based on the Company's Net Asset Value as at 31 May 2010).  This represents a figure that the Directors believe maximises the possible return to Shareholders, whilst also accounting for the future liabilities of the Company and its liquidity profile.

 

The Record Date for participation in this cash distribution shall be 30 June 2010.  The Redemption Date shall be on or around 17 August 2010 and the redemption proceeds will be paid in Sterling through CREST or by cheque (at the recipient's risk) within 30 days of the Redemption Date.  The Net Asset Value Date for the calculation of the applicable number of shares to be redeemed shall be 30 July 2010.  The 30 July 2010 Net Asset Value shall include the costs associated with the redemption, capped at £10,000.

 

Shareholders wishing to participate in the cash distribution are required to complete and return the Redemption Form in accordance with the instructions printed thereon by 3.00 p.m. on 16 July 2010.  At the same time as submitting the Redemption Form, Shareholders holding Shares in certificated form should also enclose share certificates representing 50 per cent. of their shareholding as at the time of submission of the Redemption Form.  At the same time as submitting the Redemption Form, Shareholders holding their Shares in uncertificated form through the CREST system should transfer 50 per cent. of their Shares in the Company to a CREST escrow account in accordance with the instructions on the Redemption Form.  

 

If Shareholders do not complete and return their Redemption Form and share certificates (or, for CREST Shareholders, transfer the relevant percentage of their shareholding) in accordance with the instructions printed on the Redemption Form, they will not receive redemption proceeds in respect of the compulsory redemption.  Any such proceeds will be transferred to an escrow account established by the Company and distributed to such Shareholders only once the respective valid Redemption Form is received by the Company's Registrar, failing which only in the event of a liquidation of the Company.

 

Copies of the Redemption Form and Circular dated 2 June 2009 are available on the Company's website: www.frmdiversified.com  The Circular is also available at the Document Viewing Facility of the UK Listing Authority at: Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.

Unless otherwise defined, terms used in this announcement have the same or equivalent meaning as in the Circular relating to FRM Diversified Alpha Limited dated 2 June 2009.

 

The Board of Directors reserves the right at its discretion to extend or bring forward any of the dates referred to in this announcement.  Any revised date will be notified to Shareholders by a further announcement through a Regulatory Information Service provider.

 

Enquiries:

Financial Risk Management Limited

Chris Brierley                             020 7968 6136

 

J.P. Morgan Cazenove

William Simmonds                       020 7588 2828

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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