REG - Ceiba Investments Ld - Internalisation of Management

Ceiba InvestmentsAnnouncement

27/04/2023 07:00

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RNS Number : 5535X  Ceiba Investments Limited  27 April 2023

 

 

CEIBA INVESTMENTS LIMITED

 

(TICKER: CBA, ISIN: GG00BFMDJH11)

Legal Entity Identifier: 213800XGY151JV5B1E88

 

Internalisation of Management

 

 

The Board of CEIBA Investments Limited ("CEIBA" or the "Company") is pleased
to announce that Heads of Terms have been agreed with certain group companies
of abrdn plc ("abrdn") for CEIBA to internalise the Company's investment
management arrangements.

 

Sebastiaan Berger, the lead fund manager of CEIBA and a current employee of
abrdn, will move to CEIBA as Chief Executive Officer, together with the
existing management team (collectively the "Management Team") to ensure
continuity of service.

 

Concurrently, 4K Keys Limited ("4K Keys"), a company owned by the Management
Team, that currently provides consulting services to abrdn in connection with
the management of CEIBA, will be appointed to provide strategic consulting
services in respect of the real estate assets of the Company's subsidiaries
aimed at generating positive cash flow for such subsidiaries and cash
distributions to CEIBA and its shareholders.

 

There will be no change to the Board of Directors of the Company as a result
of the internalisation.

 

Following the completion of the internalisation process, CEIBA will become a
self-managed alternative investment fund. Subject to contract, the
internalisation is expected to become effective on 30 June 2023.

 

John Herring, Chairman of CEIBA, said "The Board has concluded that
internalising the Company's investment management is in the best interests of
shareholders as it will substantially reduce the operating costs of the
Company. The retention of the current  Management Team provides continuity of
knowledge and experience alongside the non-executive Board.  On behalf of the
Board of CEIBA, I would like to thank the team at abrdn for their support over
the last 5 years and look forward to the next stage in CEIBA's development."

 

Neil Slater, Global Head of Real Assets at abrdn commented, "abrdn has been
involved with CEIBA as manager and shareholder since its London listing in
2018.  We have a large and successful real estate team managing many mandates
where our research and process can deliver greater value to clients. CEIBA
invests in a specialist area of the market where our approach is less able to
add value, so we believe it is in shareholders' best interest for CEIBA to
focus on cost-savings and for the internalisation to occur. We fully support
this and remain significant shareholders in the Company. We have had
constructive discussions with the Board and Management Team of CEIBA to
facilitate the internalisation and we wish them well."

 

Sebastiaan Berger, lead fund manager of CEIBA, stated, "While the
geo-political backdrop for the Company over the last five years has been very
challenging, the return of tourism to Cuba and the easing of U.S. sanctions
means that the prospect of healthy future income streams (in particular once
Cuba's economy and liquidity position improve) in combination with the
substantial cost reduction that is being achieved by the internalisation of
management is good news for the Company and its stakeholders. The Management
Team of CEIBA is fully committed and aligned to work towards the Company's
success."

 

Contacts:

Evan Bruce-Gardyne

abrdn plc

Tel : 0131 372 2200

 

James Maxwell/James Waterlow

Singer Capital Markets

Tel : 020 7496 3000

 

 

Important Information

This information contained within this announcement is deemed by the Company
to constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this announcement via a
Regulatory Information Service, this inside information is now considered to
be in the public domain.

 

--- ENDS -----

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