Highbridge Multi-Strategy Fund has published a circular in connection with a tender offer for the company. The board has the power to offer shareholders quarterly cash exits, at NAV less costs, and the first such tender offer is to take place in October 2016. The company expects that tendering Shareholders will receive most of the cash in February 2017.
The Boardsay that it strongly believes that Highbridge Capital Management have performed well since their appointment as investment manager, particularly over recent months, by delivering a steady and consistent return within the underlying fund. The board say that conversations with a large range of Shareholders confirm that many would welcome the Company growing in size, with the attendant benefits of reduced costs and greater liquidity and it is the board’s aim to increase the size of the Company as soon as practicable.
The board says that it is very alert to the desire of shreholders regarding the stability of the discount to NAV. However, as at 22 September 2016, the Shares were trading at approximately a 7 per cent. Discount and, as a result, the Board has decided to provide a tender for up to 20 per cent of the Shares in issue. This will provide Shareholders with an opportunity to realise a proportion of their investment in the Company (in whole or in part, subject to tenders from other Shareholders) whilst enabling the Company to hold Tendered Shares in treasury with the view to placing those Tendered Shares in the future.
Highbridge Multi-Strategy Fund announces 20% cash tender : HMSF