BlackRock Emerging Europe will wind up – BlackRock Emerging Europe says that 21,821,195 ordinary shares were validly tendered under its tender offer, representing approximately 60.75% of its issued share capital. The remaining assets of the company would be approximately GBP48 million, which is below the minimum level which the
Board deems necessary for the company to continue. The Board has, therefore, elected not to proceed with the tender offer and revised proposals will be put forward to shareholders, which will include a full cash exit at NAV less applicable costs and will be announced in due course.
The general meeting due to be held on 20 June 2018 will no longer take place.
The portfolio will continue to be managed in accordance with the investment policy until such time as alternative proposals are approved by shareholders.
Commenting on the results of the tender, chairman of the Board Neil England said: “The board of BlackRock Emerging Europe have always recognised its role is to act in the best interests of our shareholders. We have regularly consulted with our major shareholders to understand their objectives and used their input to guide our strategy and policies.
Our strategy has allowed our well-regarded investment managers to take conviction based positions and be able to invest with confidence for a fixed period of time.
This strategy has delivered value to shareholders. Since BlackRock took over the mandate in 2009, our shareholders have seen the value of their investments rise by close to 140%. This is more than double the return of the reference index. Our company has also been a top decile performer in comparison with our open-ended peers as well as the best performer in the AIC European Emerging Markets closed-ended peer group over this period and has enjoyed the tightest discounts to Net Asset Value.
We fully understand that following these very strong absolute and relative returns, many shareholders have opted to take profits on their positions. It is their decision as to where they chose to invest their money and they should be free to seek out the most promising investment opportunities, wherever they are to be found.
I would like to congratulate our portfolio managers, Sam Vecht and Chris Colunga, for producing such excellent results and thank BlackRock and my fellow board members for their diligence and commitment to the effective running of the company in the interests of shareholders.
The current tender offer will now be withdrawn and we will make new proposals to shareholders which will include a full cash exit.”
[QD comment: this is a shock result for a fund that seemed to be quite well regarded.]
BEEP : BlackRock Emerging Europe will wind up