REG - CATCo Re-ins Opps Fd - Circ re. Compulsory Redemption of Shares

CATCo Reinsurance Opportunities FundAnnouncement

25/02/2020 07:00

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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.                                                                      Numis Securities Limited

 Judith Wynne                                                                                                 David Benda / Hugh Jonathan

 General Counsel                                                                                              Telephone: +44 (0) 20 7260 1000

 Telephone: +1 441 493 9005

 Email: judith.wynne@markelcatco.com

 Mark Way

 Chief of Investor Marketing

 Telephone: +1 441 493 9001

 Email: mark.way@markelcatco.com (mailto:mark.way@markelcatco.com)

 

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