REG - EJF Investments Ltd EJF Investments-EJFZ - Tender Offer

EJF InvestmentsAnnouncement

01/09/2025 07:00

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RNS Number : 2794X  EJF Investments Ltd  01 September 2025

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01 September 2025

 

 

EJF Investments Limited (the "Company" or "EJFI")

 

EJFI Announces Tender Offer of 5% of its Ordinary Shares

The Board of EJFI, which provides investors exposure to primarily a
diversified portfolio of debt issued by smaller U.S. banks and insurance
companies, and participation in certain management fee income streams of EJF
Capital LLC, is pleased to announce its intention to conduct the Company's
first tender offer for up to 5% of Ordinary Shares in issue at a 5% discount
to the Company's NAV per share (adjusted for the costs of the tender offer).
The Company expects to publish a formal tender document to Ordinary
Shareholders during the middle of September, which will contain full details
of the tender offer, including the tender price, which is expected to be
calculated by reference to the NAV per share at 31 August 2025.

On 27 November 2024, the Company announced the introduction of a periodic
tender offer mechanism (referred to as the "Liquidity Option") whereby
Ordinary Shareholders would be offered the opportunity (at the Board's
discretion) to tender some or all of their respective holdings of ordinary
shares, subject to this not exceeding an aggregate maximum of 5% of the
Ordinary Shares in issue in a 12-month period. The Liquidity Option was
approved by shareholders on 17 December 2024.

The Liquidity Option was introduced in recognition of the ongoing discount to
NAV at which the Company's Ordinary Shares have traded. Whilst the Company's
long-term objective is to increase its scale, it would like to provide an
opportunity for Ordinary Shareholders to receive a return of capital for their
Ordinary Shares at a premium to the Company's current prevailing share price
whilst also providing an element of NAV per Ordinary Share accretion to all
Ordinary Shareholders. Although the Company has seen a reduction over the year
in the discount at which its Ordinary Shares trade, reducing from 27.3% at the
start of the financial year to the current level of 25.0%, the Board considers
it in the best interests of shareholders to implement the Liquidity Option and
provide Ordinary Shareholders with the opportunity to realise a proportion of
their investment at a significantly tighter discount.

John Kingston III, the Company's Chair, stated: "Although the Manager has
taken constructive steps to narrow the discount meaningfully over the past 12
months and the share price has increased 27.5% over that period, the Board is
determined to have the Company's shares trade closer to net asset value.  The
Board therefore believes that a 5% tender at a 5% discount, consistent with
the authority granted by the shareholders, is the next best step to continue
reducing the Company's trading discount."  Mr. Kingston also noted that the
Company has provided a Total Return (inclusive of dividends) of 97.79% from
its inception in 2017 to 31 July 2025.

None of the Ordinary Shares held by the members of the Board will be tendered
under this offer.  The Manager has also informed the Board that none of the
principals of the Manager or EJF Capital Limited (an affiliate of the Manager)
intend to tender Ordinary Shares under this offer. The Manager and its
affiliates currently hold approximately 26% of the Company's Ordinary Shares.

 

ENQUIRIES

For the Investment Manager

EJF Investments Manager LLC

Mungo Hargreaves / Jay Ghatalia

MHargreaves@ejfcap.com / jghatalia@ejfcap.com

+44 20 3752 6775 / +44 203 752 6776

 

For the Company Secretary and Administrator

Apex Financial Services (Alternative Funds) Limited

ejficosec@apexgroup.com

+44 204 549 0721

 

For the Broker

Panmure Liberum Limited

Darren Vickers / Ashwin Kohli

 +44 203 100 2222

 

Barclays Bank PLC

Dion Di Miceli/Stuart Muress/James Atkinson

BarclaysInvestmentCompanies@barclays.com
(mailto:BarclaysInvestmentCompanies@barclays.com)

+44 207 623 2323

 

About EJF Investments Limited

EJFI's objective is to provide shareholders with attractive risk adjusted
returns through regular dividends and capital growth over the long term. EJFI
generates exposure primarily to a diversified portfolio of loans issued by
financial institutions and related or similar assets in the U.S., U.K. and
Europe.

 

EJFI currently invests primarily in CDO Equity Tranches structured by an
affiliate of EJF Capital LLC, providing levered exposure to a highly
diversified portfolio of securities issued by U.S. financial institutions
(banks and insurance companies), these being Risk Retention Investments.

 

EJFI is a registered closed-ended limited liability company incorporated in
Jersey under the Companies (Jersey) Law 1991, as amended, on 20 October 2016
with registered number 122353. The Company is regulated by the Jersey
Financial Services Commission (the "JFSC"). The JFSC is protected by both the
Collective Investment Funds (Jersey) Law 1988 and the Financial Services
(Jersey) Law 1998, as amended, against liability arising from the discharge of
its functions under such laws.

 

LEI: 549300XZYEQCLA1ZAT25

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