Circ re. Compulsory Redemption of Shares

RNS Number : 9749D

CATCo Reinsurance Opps Fund Ltd

25 February 2020

 

25 February 2020

CATCo Reinsurance Opportunities Fund Ltd. (the "Company")

Proposed Amendment to the Company's Bye-Laws to permit redemptions of the Company's

Ordinary Shares and C Shares

The Company issued a circular to Shareholders dated 28 February 2019 (the "February 2019 Circular") concerning the proposed implementation of the orderly run-off of the Company's portfolios (the "Run-Offs") by means of a change to the Company's investment policy to enable the Company to redeem all of the Company's Master Fund Shares attributable to the Ordinary or C Shares, as the case may be (the "Proposals"), and distributing the net proceeds thereof to the relevant class of Shareholders. The Proposals were approved at class meetings of the Ordinary and C Shareholders of the Company held on 26 March 2019.

Accordingly, as set out in the Circular, the Company exercised the Special Redemption Right in respect of 100 per cent of its Master Fund Shares as at 30 June 2019 and has, to date, returned capital to its Shareholders by means of a reverse tender offer (as announced on 6 September 2019) and a series of share buybacks conducted during the fourth quarter of 2019.

As at the date of this announcement, the Ordinary Share portfolio and the C Share portfolio comprise cash and the following shares (in each case as a percentage of the Net Asset Value of the relevant share class and by value, determined using 31 December 2019 Net Asset Values).

	Ordinary Share portfolio	C share portfolio
Cash	6.3% (US$5.1m*)	8.5% (US$19.1m*)
Shares in respect of:
Side pocket shares:
From 2019	26.0% (US$21.1m)	38.7% (US$87.3m)
From 2018	26.4% (US$21.5m)	52.8% (US$119.2m)
From 2017	30.0% (US$24.4m)
From 2016	11.3% (US$9.2m)

* Approximately 90 per cent of cash to be distributed and approximately 10 per cent withheld for expenses.

The Board has, having consulted with its advisers and major shareholders, concluded that the most appropriate method by which to return the further net proceeds of the Company's exercise of the Special Redemption Right is to conduct compulsory redemptions at the prevailing Net Asset Value per Ordinary or C Shares, as the case may be in relation to the Company's Ordinary and C Shares (each a "Compulsory Redemption").

The Company is not currently permitted to redeem Shares in this manner under its Bye-laws and, consequently, the Company will, as soon as practicable, publish a circular to Shareholders (the "Compulsory Redemption Circular") setting out its specific proposals for conducting the Compulsory Redemptions (the "Compulsory Redemption Proposal").

The separate approvals of the Shareholders as a whole, the Ordinary Shareholders as a class and C Shareholders as a class is required to permit the Company to carry out Compulsory Redemptions. Approval will be sought at a Special General Meeting and separate Class Meetings. Notices convening the Special General Meeting and Class Meetings will be set out in the Compulsory Redemption Circular.

This announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.  

For further information:
Markel CATCo Investment Management Ltd. Judith Wynne General Counsel Telephone: [phone] Email: [e-mail] Mark Way Chief of Investor Marketing Telephone: [phone] Email: [e-mail]	Numis Securities Limited David Benda / Hugh Jonathan Telephone: [phone]

 

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