Qatar Investment Fund (QIF) has announced a tender offer to purchase up to 10% of its issued share capital. This follows QIF’s announcement on 16 October that it intends to change its investment policy to become a Gulf Investment Fund, in which the board announced that it would put proposals for a tender offer.
Tender offer reflects limited liquidity in QIF’s shares
The Board says that it is aware that the Shares are tightly held and that therefore liquidity can, at times, be limited. It says that it is also mindful that it believes it to be appropriate to offer a tender offer to Shareholders when proposing a material change to the investment policy. It says that the 2017 Tender Offer is designed to enable those Shareholders who wish to realise a portion of their holding of Shares to have the opportunity to do so. The tender offer is conditional on the passing of resolution 1, which amends the Company’s investment policy, at an EGM to be held on 7 December 2017.
The tender price
QIF says that the tender price will be an amount equal to a discount of one per cent. to Formula Asset Value (this includes the costs of the tender offer, including the cost of associated portfolio realisations) as at the Calculation Date. The Record Date for the 2017 Tender Offer is 5.30 p.m. on 14 November 2017. It says that continuing Shareholders should receive an uplift to their NAV per Share as a result. The company expects to announce the tender price on 18 December 2017.
Future tender offers
The board says that it has decided not to put forward further tender offers in 2018 and 2019, but it has committed to put forward a tender offer of up to 100 per cent. of the Company’s issued share capital at the time of the 2020 annual general meeting. It says that this will be subject to Shareholder approval, which is to be sought in 2020.
Qatar Investment Fund announces details of 10% tender offer : QIF