Update to Shareholders regard

RNS Number : 5992M

Baker Steel Resources Trust Ltd

26 May 2010

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

BAKER STEEL RESOURCES TRUST LIMITED

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

Update to Shareholders regarding Ferrous Resources:

As highlighted at launch, substantially all the non-cash assets of Baker Steel Resources Trust Limited (the "Company") were acquired as a package, pursuant to a reorganisation of Genus Capital Fund, defined in the Company's Prospectus dated 31 March 2010 as the "Initial Portfolio". The Initial Portfolio included a holding in Ferrous Resources Limited ("Ferrous") which represented 20.95% of the Company's gross assets at 30 April 2010, immediately following the transaction. The Company's 30 April 2010 NAV Statement detailed the Company's top shareholdings, including the Ferrous position at 21.7% of net asset value.

As set out in the Prospectus, individual investments are limited to no more than 20% of the Company's gross assets at the time of acquisition. As such the Investment Manager will reduce the position in Ferrous to no more than 20% of gross assets as soon as is reasonably practicable.

Ferrous has formally announced its intention to float on the London Stock Exchange (Ferrous press release dated 17 May 2010). Ferrous stated that it intends to raise gross proceeds of approximately US$350m to US$400m from the issue of new shares.  Subject to market conditions, the Ferrous float is expected to take place in June 2010.

The proposed IPO of Ferrous should facilitate the reduction of the Company's holding in the stock. The holding in Ferrous is not subject to any holding period or other selling restrictions associated with the proposed listing.

Updates on the Company's holding in Ferrous will be provided in the normal course of business in the Monthly NAV Statement, although any significant changes will be reported promptly.

Enquiries:

Baker Steel Resources Trust Limited

Trevor Steel                                          [phone]

Winterflood Investment Trusts

Robert Peel/James Moseley                   [phone]/0250

RBC Capital Markets

Martin Eales                                          [phone]

This announcement is not for distribution directly or indirectly in or into the United States, Canada, Australia or Japan.  This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire Ordinary Shares or Subscription Shares in the capital of Baker Steel Resources Trust Limited in the United States, Canada, Australia or Japan or any jurisdiction in which such an offer or solicitation is unlawful.  The Ordinary Shares and Subscription Shares in Baker Steel Resources Trust Limited have not been and will not be registered under the United States Securities Act and may not be offered or sold within the United States absent registration or an exemption from registration.  No public offering of securities will be made in the United States, Canada or Australia or Japan.

 

END

 

 

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