In October 2015, Dexion Absolute announced that, in the event that the Shares trade at an average discount of 5 per cent. or more to its NAV in the three months commencing on 1 January 2016, it would put forward proposals for either a winding up of the Company and the appointment of a liquidator or a managed winding down of the Company’s investments and the subsequent winding up of the Company.
The Board is mindful, in light of the discount at which the Shares have traded since 1 January 2016, that it is highly likely the discount trigger will be met and has determined to bring forward a liquidation proposal in advance of the end of the three month period.
If the proposal is approved by shareholders as a special resolution, it will enable the Company to request the redemption of its entire holding in Aurora Offshore Fund Ltd. II before the end of March 2016 and thus to receive redemption proceeds by reference to a 30 June 2016 redemption date. If Dexion Absolute were, instead, to wait until the three month period commencing 1 January 2016 were complete before putting proposals to shareholders, the earliest date on which the Company’s holding could be redeemed would be 30 September 2016.
For the avoidance of doubt, the Board intends to proceed with the proposal described above even if the average discount in the three months commencing 1 January 2016 is less than 5 per cent.
The Company will publish a circular to Shareholders, setting out full details of this proposal and convening the required extraordinary general meeting, no later than 26 February 2016.
DAB / DABU : Dexion Absolute to wind up