AVI requisitions Third Point Investors meeting – AVI and three other shareholders in Third Point Investors Limited, who between them owning over 17% of Third Point, have today requisitioned the Third Point Investors’ board to convene an extraordinary general meeting. At the meeting, shareholders would vote on a resolution to change Third Point’s investment policy. AVI says that the resolution is aimed at fixing Third Point Investors’ “persistent and entrenched” discount.
The proposed new investment policy would see Third Point Investors use its existing contractual authority to redeem shares in the underlying Master Fund and use the proceeds to fund redemptions of its shares at a price equal to NAV less costs on a quarterly basis. They balance this by suggesting that investors are able to subscribe for shares at the same price. The implication being that if there was sufficient demand, Third Point Investors might be able to grow.
The proposed new investment policy would place no obligation on any shareholder to redeem any of its investment in Third Point Investors – simply an ability to do so, at a price close to NAV. Nor, says AVI, should it have any material impact on NAV returns for those shareholders who wish to remain invested.
AVI’s rationale for seeking to make this change is discussed in this letter (links to AVI’s website).
[Third Point Investors’ discount has narrowed in recent days to about 11.5%, but for an extended period it did average around 20%. The discount narrowing is evident in the one year returns of +40% for NAV but +65% for the share price. AVI’s suggestion offers the chance of a more permanent narrow discount for Third Point Investors.]
AGT / TPOU : AVI requisitions Third Point Investors meeting