New investment company
Ashmore Group PLC
29 October 2007
29 October 2007
PRESS RELEASE
ASHMORE ANNOUNCES ITS INTENTION TO FLOAT
A NEW INVESTMENT COMPANY ON THE LONDON STOCK EXCHANGE
This announcement is an advertisement and not a prospectus and investors should
not subscribe for or purchase any shares referred to in this announcement except
on the basis of information in the prospectus to be published by the Company in
due course in connection with the admission of the ordinary shares in the
capital of the Company to the main market of the London Stock Exchange plc (the
'Prospectus'). Copies of the Prospectus will, following publication, be
available from the Company's registered office.
Ashmore Group plc ('Ashmore'), a leading emerging market investment manager,
today announces its intention to launch a newly incorporated publicly listed
closed-ended investment company, Ashmore Global Opportunities Limited (the
'Company'), whose shares will be listed on the Main Market of the London Stock
Exchange ('LSE'). The Company intends to raise €500 million through the offer
(the 'Offer'). The Company will invest across Ashmore's investment themes with a
principal focus on Special Situations.
Offer Highlights
Direct access to a leading specialist in emerging markets
• Ashmore is a leading specialist value-oriented emerging markets asset
manager with US$33.1 billion of assets under management(1)
• The Company will have access to the full range of Ashmore's current
and future investment themes
Rapid deployment of proceeds
• The Offer proceeds(2) are to be invested promptly following closing of
the Offer in Ashmore-managed funds across its investment themes
Diversified exposure to emerging market investments with a principal focus on
Special Situations
• Shareholders will be offered exposure to investments in emerging
markets across Ashmore's investment themes, currently Special Situations, Dollar
Debt, Local Currency, Equity and Corporate High Yield
• To deliver its principal focus on Special Situations, the Company will
have guaranteed capacity of up to 25% in all future Ashmore Special Situations
focussed funds including the ability to make a commitment upon closing of the
Offer of up to 25% or US$400 million in GSSF4, Ashmore's most recent Special
Situations fund, together with the ability to make direct Special Situations
investments
• Offer proceeds(3) not initially invested in GSSF4 will be invested in
AMSF, Ashmore's multi-strategy fund, and other Ashmore managed funds
Strong long-term investment performance track record
• Ashmore's highly experienced investment team has a track record of
delivering strong investment performance across its investment themes
• Since its launch in March 2003, AMSF has achieved a net annualised
return in excess of 18%
Appealing structure and investor protections
• None of the costs in relation to the Offer will be borne by the
Company
• No double charging of investment management fees(4)
• The Company's Board has a majority of independent directors
• Board authority to buy back up to 14.99% of shares per annum
The Company
The Company is a Guernsey incorporated closed-ended investment company, whose
investment manager will be Ashmore Investment Management Limited (the
'Investment Manager'). It is intended that the Company will offer three classes
of voting ordinary shares, trading in US Dollar, Euro, and Sterling,
respectively. The shares will be admitted to listing (under Chapter 14 of the
UK Listing Authority's Listing Rules) on the Official List and to trading on the
LSE's Main Market.
Ashmore has selected Goldman Sachs International and JPMorgan Cazenove Limited
as joint global coordinators and joint bookrunners for the Offer and Goldman
Sachs International, JPMorgan Cazenove Limited and JPMorgan Securities Limited
as joint lead managers for the Offer.
- Ends -
For further information please contact:
Penrose
Gay Collins +44 (0)20 7786 4882
Julie Allison +44 (0)20 7786 4872
Ashmore
Jerome Booth +44 (0)20 7557 4100
Tom Shippey +44 (0)20 7557 4100
Notes to editors
Ashmore Group
Ashmore is a specialist, active, value-oriented emerging markets asset manager.
It was originally formed in 1992, within the emerging markets business of ANZ,
by the current Chief Executive Officer of the Investment Manager, Mark Coombs
and its senior executives who sought and undertook a management buy-out of the
business which was completed in February 1999. Subsequently, Ashmore was listed
on the London Stock Exchange in October 2006 and is majority owned by its
employees.
Ashmore currently manages US$33.1 billion of assets under management(5) and
focuses on five emerging markets investment themes - Special Situations, Dollar
Debt, Local Currency, Equity and Corporate High Yield - and has a record of
delivering strong long-term investment performance. Across these diversified
investment themes, members of the Ashmore Group managed 21 Ashmore funds
(including open-ended and closed-ended funds), 14 segregated accounts, 9 white
label funds (including 2 structured product vehicles)(6).
Ashmore is headquartered in London, with offices in New York and Singapore and
operations in Turkey and India, and employs 77 staff, including 27 investment
professionals and an 8 person legal team(7).
The current Ashmore funds have over 1,800 investors across its investment
themes, with a predominantly institutional investor base which includes pension
plans, government agencies, financial institutions and corporates.
Important Information
This announcement is not for distribution (directly or indirectly) in, into or
from the United States, Australia or Japan (or any other jurisdiction where to
do the same would constitute a violation of the relevant securities laws of such
jurisdiction). In addition, this announcement does not constitute an offer of
securities for sale in or into the United States, Canada or Japan (or any other
jurisdiction where the same would constitute a violation of the relevant
securities laws of such jurisdiction)
This announcement has been issued by Ashmore Group plc ('Ashmore') 20
Bedfordbury, London WC2N 4BL and has been approved by Ashmore Investment
Management Limited solely for the purposes of section 21 of the Financial
Services and Markets Act 2000.
Goldman Sachs International, JPMorgan Cazenove Limited and JPMorgan Securities
Limited (the 'Banks'), which are authorised and regulated by the Financial
Services Authority, are acting for the Company and no one else in connection
with the Offer and will not regard any other person as the respective clients of
each of the Banks in relation to the Offer and will not be responsible to anyone
other than the Company for providing the protections afforded to the respective
clients of each of the Banks nor for providing advice in relation to the Offer
or any transaction of arrangement referred to in this announcement or the
Prospectus.
This announcement constitutes an advertisement within the meaning of the
Prospectus Rules of the Financial Services Authority (the 'FSA') and is not a
prospectus. This announcement does not constitute or form part of any offer of
securities, or constitute a solicitation of any offer to purchase or subscribe
for securities. Investors should not subscribe for shares in the Company except
on the basis of information contained in the Prospectus which it is intended
will be approved by the FSA in accordance with the Prospectus Rules made under
section 73A of the Financial Services and Markets Act 2000 in connection with
the Offer and any supplement to that Prospectus. The Prospectus will contain
detailed information about the Company and its management as well as financial
statements and other data. After its approval by the FSA and publication, copies
of the Prospectus will be available from the offices of Ashmore at 20
Bedfordbury, London WC2N 4BL.
No representation or warranty, express or implied, is made or given by or on
behalf of Ashmore, the Company, Ashmore Investment Management Limited, the Banks
or any of their respective affiliates or any of such person's directors,
officers or employees or any other person as to the accuracy, completeness or
fairness of the information or opinions contained in this announcement and no
responsibility or liability is accepted by such persons for any such information
or opinions.
The securities have not been, and will not be, registered under the U.S.
Securities Act of 1933, as amended (the 'Securities Act'), and may not be
offered or sold in the United States, or to, or for the account or benefit of,
US persons (as such term is defined in Regulation S under the Securities Act)
absent registration or an exemption from the registration requirements of the
Securities Act. The issuer of the securities mentioned herein does not intend
to register any portion of the Offer in the United States or to conduct a public
offering of securities in the United States. The issuer of the securities
mentioned herein has not been and will not be registered under the US Investment
Company Act of 1940, as amended, and investors will not be entitled to the
benefits of that Act.
This announcement does not constitute a recommendation concerning the Offer. The
value of shares can go down as well as up. Past performance is not a guide to
future performance. Potential investors should consult a professional adviser as
to the suitability of any offering for the individual concerned.
This announcement includes forward-looking statements which are or may be deemed
to be 'forward-looking statements' under United States securities laws. These
forward-looking statements can be identified by the use of forward-looking
terminology, including the terms 'targets', 'believes', 'estimates', '
anticipates', 'expects', 'intends', 'may', 'will' or 'should' or, in each case,
their negative or other variations or comparable terminology. By their nature,
forward-looking statements involve risks and uncertainties because they relate
to events and depend on circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future performance. The
Company's actual investment performance, results of operations, financial
condition, liquidity, dividend policy and the development of financing
strategies may differ materially from the impression created by any
forward-looking statements contained in this announcement. In addition, even if
the investment performance, results of operations, financial condition,
liquidity, dividend policy and the development of financing strategies are
consistent with the forward-looking statements contained in this announcement,
those results or developments may not be indicative of results or developments
in subsequent periods. Important factors that may cause these differences
include, but are not limited to, changes in economic conditions generally;
changes in interests rates and currency fluctuations, as well as the success of
the Company's hedging strategies in relation to such changes and fluctuations
(if such strategies are in fact used); impairments in the value of the Company's
investments; legislative/regulatory changes; changes in taxation regimes; the
Company's ability to invest cash on its balance sheet and the proceeds of the
Offer in suitable investments on a timely basis; the availability and cost of
capital for future investments and the availability of suitable financing. No
representation or warranty is given by the Company, Ashmore or Ashmore
Investment Management Limited as to the performance or profitability of the
Company or any part of it or the success of any investment strategy used by the
Company.
In connection with the Offer, Goldman Sachs International, as stabilisation
manager, may, for a period of 30 days after the results of the Offer are
announced, over-allot or effect transactions intended to enable it to satisfy
any over-allocations of shares in the Company, or which stabilise, maintain,
support, or otherwise affect, the market price of the shares of the Company at a
higher level than that which might otherwise prevail in the open market.
--------------------------
(1) As at 30 September 2007.
(2) Less any amount retained for working capital requirements.
(3) Less any amount retained for working capital requirements.
(4) Other than for investments in money market and liquidity funds for the
purposes of efficient cash management.
(5) As at 30 September 2007
(6) As at 30 September 2007
(7) As at 30 September 2007
This information is provided by RNS
The company news service from the London Stock Exchange
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