8th Nov 2010 15:03
Proposed Reverse Auction Tender Offer
The Company's net asset value ("NAV") continues to deliver strong positive returns. Over the period from 31 December 2009 to 22 October 2010, the NAVs of the Sterling, Euro and US Dollar denominated Shares appreciated by 7.47 per cent., 7.14 per cent. and 7.00 per cent. respectively.
However as the Share price discount to NAV of each Share class remains relatively wide, the Board announces that the Company will make a reverse auction tender offer (the "Reverse Auction Tender Offer").
The Reverse Auction Tender Offer will be open only to Shareholders ("Eligible Shareholders") on the register at 5.00 p.m. on 5 November 2010 ("Record Date") and will be in respect of those Shares held by each Eligible Shareholder on the Record Date. Any Shareholder who elects to convert Shares by reference to the 31 December 2010 currency conversion date will be unable to accept the Reverse Auction Tender Offer either for existing Shares (if a conversion notice has been or is submitted in respect of such Shares) or for new Shares arising on conversion. Shareholders should further note that if they elect to accept the Reverse Auction Tender Offer for existing Shares, they will not be able to convert those Shares by reference to the 31 December 2010 currency conversion date.
Under the proposed Reverse Auction Tender Offer, up to 5 per cent of each of the Sterling, Euro and US Dollar denominated Shares in issue on the date of the publication of the Circular mentioned below (the "Available Shares") will be purchased. Eligible Shareholders of each Share class will be able to tender for purchase some or all of their Shares at their chosen level of discount to the month-end NAV as at 31 December 2010 (each a "Discount Level") subject however to a minimum discount level of 12.00 per cent.
The prices at which tendered Shares of each Share class will be purchased (the "Strike Prices") will be determined by applying the highest Discount Level at which the Company could purchase all the Available Shares of that Share class. The priority in which Shares of each class will be purchased at the relevant Strike Price will be determined by the Discount Level at which they are tendered, with Shares tendered at a higher Discount Level having priority over Shares tendered at a lower Discount Level in any particular class and with any excess at the relevant Strike Price being purchased from Shareholders pro rata to the number of Shares tendered at the relevant Strike Price.
All Shares purchased pursuant to the Reverse Auction Tender Offer will be held in Treasury.
A Circular containing the terms of the Reverse Auction Tender Offer and related documentation are expected to be posted to Shareholders on or around 13 December 2010.
At the next annual general meeting of the Company to be held in 2011, the Company may seek the authority to implement further reverse auction tender offers during 2011. In the event that Shareholder authority is sought and granted, such reverse auction tender offers will be implemented at the Board's discretion and the Directors will not be obliged to offer any reverse auction tender offers.
The Board therefore reserves the right not to proceed with any further reverse auction tender offers in 2011.
EXPECTED TIMETABLE
Record date for the Reverse Auction tender 5.00 pm on Friday, 5 November 2010 Circular posted, on or around Monday, 13 December 2010
Reverse Auction tender offer NAV calculation Friday, 31 December 2010
Release of estimated 31 December month end NAV Wednesday, 12 January
2011
Latest time and date for receipt of Tender Forms Friday,14 January 2011 (with share certificates) and delivery of TTE
Instructions
Announcement of the Reverse Auction Tender elections Monday, 17 January 2011
Settlement through CREST of unsatisfied tenders for Tuesday, 18 January 2011 Shares pursuant to the Reverse Auction Tender Offer
Release of 31 December month end NAV Thursday, 27 January 2011
Announcement of Strike Price for each class of Wednesday, 2 February Shares
2011
Settlement of the Reverse Auction Tender Offer Thursday, 10 March 2011 consideration
(Within 30 business days after the publication of the net asset value per share at the NAV calculation date) Enquiries:Jonathan Ruck KeeneKerry Higgins (Company Secretary) - 020 7743 3000BlackRock Investment Management (UK) LimitedWill Rogers/Chris Lunn - 020 7397 1920/397 1912Cenkos Securities plc
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