Notice of EGM

RNS Number : 8172C

Prodesse Investment Limited

20 November 2009

 



20 November 2009

Prodesse Investment Limited ("Prodesse" or "the Company")

Notice of Extraordinary General Meeting regarding the proposed winding-down of the activities of the Company

On 3 November 2009, as part of the announcement of the Company's third quarter results, the Board announced that in consultation with Fixed Income Discount Advisory Company (FIDAC), the Company's investment manager, it was considering the possibility of bringing forward the Company's continuation vote which is currently scheduled to be held at the 2010 annual general meeting.

As a result of these discussions, the Board today announces that it intends to convene an EGM to consider resolutions (a) to authorise the Company to commence a programme of realisation of the Company's assets and amend the investment objectives and policy of the Company accordingly and (b) to amend Article 149(A) of the Articles of Incorporation of the Company to postpone the obligation to propose the scheduled continuation resolution from the 2010 annual general meeting to the 2015 annual general meeting.

While the Directors and FIDAC believe the Company's investment strategy will continue to provide attractive returns, the Directors are aware that liquidity in the Company's shares remains limited and that this is an area of concern for certain shareholders. The Directors have repeatedly discussed a number of options for attracting additional investor interest and sponsorship with FIDAC and other advisers of the Company in order to improve liquidity in the Company's shares, however it has become evident that a majority of shareholders wish to realise their investment in the Company. As a result of these discussions and taking into account current market conditions, the Directors have decided effectively to bring forward the Company's continuation vote that is due to be held at the 2010 annual general meeting by proposing a resolution to authorise FIDAC to commence an orderly realisation of the Company's investments.

The Directors believe that these actions are in the best interests of the Company and of shareholders as a whole and that shareholders should vote in favour of such resolutions irrespective of the Company delivering a cumulative inception to date return of 26.5% (calculated through 30 September 2009), a year to date return of 67.1% (calculated through 30 September 2009) and a current annualized dividend yield of approximately 14%. 

"We believe that our investment strategy has enabled Prodesse to perform through some of the most challenging markets in modern times," said Ronald Kazel, Managing Director of FIDAC and a director of Prodesse. "Despite the fact that the Company is currently delivering above-market yields, the convergence of the imminent continuation resolution and trading level of Prodesse's shares relative to its net asset value leads us to conclude that it is in the best interest of shareholders to take advantage of current market values for the Company's assets."

A circular to shareholders convening the EGM will be despatched as soon as practicable.

Enquiries:

Noble & Company:                                                         [phone]

Peter Tracey/James Staveley

Daniel Stewart:                                                               [phone]

Martin Lampshire                

Financial Dynamics:                                                       [phone]
Nick Henderson/Rob Bailhache

BNP Paribas Fund Services (Guernsey) Limited:        [phone]

Sara Bourne/Jean McMillan

 

END

 

 

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