Boussard & Gavaudan Holding (BGHL) announced its annual results for the 12 month period to 31 December 2023. The NAV for the Euro shares decreased by 0.79% and the Sterling shares increased by 0.57%, whilst the market price of BGHL’s Euro shares increased by 13.51% and the market price of the Sterling shares increased by 2.50%.
As disclosed in the 2022 annual report and audited financial statements, the board had previously made a commitment that, if the company’s shares traded at an average discount in excess of 15 per cent over the financial year to 31 December 2022, the board would propose a continuation vote at the annual general meeting to be held in 2023. As that condition was met, the board recommended proposals for a managed wind-down of the company at the AGM which was held on 28 September 2023. The managed wind-down proposals were approved by the shareholders.
Discussing this process further the advisor noted:
“The liquidity risk of the Master fund is managed to ensure that sufficient liquidity exists to allow for ‘redemption events’, this includes a Managed Wind-down of BGHL until 1 November 2024. BGHL will realise its assets for the Managed Wind-down and return the capital to the BGHL’s shareholders in November. BGHL will have a liquidity requirement arising from the commitment to pay redemptions in cash to the BGHL shareholders who do not elect to participate in an offer to roll over their investment. The low fixed cost base of BGHL, with operating expenses in the period up to proposed wind down date representing less than 2% of its NAV, means that enough liquidity can be maintained to meet expenses including liquidation costs.”
BGHL : Boussard & Gavaudan heads towards wind down