Initial Public Offering for Largest Investment

RNS Number : 9420O

Baker Steel Resources Trust Ltd

18 October 2012

 



BAKER STEEL RESOURCES TRUST LIMITED

(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)

18 October 2012

Successful IPO for Largest Investment

Baker Steel Resources Trust Limited (the "Company") announces that its largest investment, Ivanplats Limited ("Ivanplats"), has set the price of its Initial Public Offering ("IPO") and listing on the Toronto Stock Exchange ("TSX"), raising C$300,803,250 through the issue of 63,327,000 class A common shares ("Class A Common Shares") at C$4.75 per Class A Common Share. Class A Common Shares in Ivanplats started trading on the TSX yesterday under the symbol "IVP" on an "if, as and when issued" basis.

On 11 September 2012, Ivanplats completed a reclassification of all outstanding common shares as Class B common shares and created the Class A Common Shares.  The reclassification preserved existing shareholders' rights but imposed a restriction on transfer that inhibits liquidity until such time as the Class B common shares are converted to Class A Common Shares. Such conversion occurs automatically, 39 months after the IPO. Existing shareholders who sign a conversion lock-up agreement will have their Class B common shares converted into Class A Common Shares but these will be subject to a phased lock-up of 180 days followed by quarterly releases of 8-9% over the following 33 months. The Company currently holds Class B common shares and is in the process of signing the conversion lock-up agreement to convert into Class A Common Shares.

The Company considers it appropriate to value its Ivanplats shares at a 10% discount to the listed price in calculating its NAV to reflect the lock-up arrangements in arriving at the carrying value. Based on the IPO price and after applying this discount the NAV of the Company as at 28 September 2012 would increase by 6.9% and Ivanplats would represent 35.8% of NAV. At this carrying value it represents a 130% unrealised return on the Company's investment.

Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com 

Enquiries:

Baker Steel Resources Trust Limited                 [phone]

Francis Johnstone
Trevor Steel

RBC Capital Markets                                       [phone]

Martin Eales

Winterflood Investment Trusts                           [phone]

James Moseley

Pelham Bell Pottinger

Lorna Spears                                                    [phone]

Joanna Boon                                                     [phone]

The Net Asset Value ("NAV") figures stated are based on unaudited estimated valuations of the underlying investments and not necessarily based on observable inputs. Such estimates are not subject to any independent verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some estimated valuations are based on the latest available information which may relate to some time before the date set out above.

Accordingly, no reliance should be placed on such estimated valuations and they should only be taken as an indicative guide. Other risk factors which may be relevant to the NAV figures are set out in the Company's Prospectus dated 31 March 2010.

 

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