Intnl. Biotechnology - Investment Management Update

International Biotechnology Trust

13/02/2023 07:00

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RNS Number : 6470P  Intl. Biotechnology Trust PLC  13 February 2023

This Announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation EU 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018.

13 February 2023

INTERNATIONAL BIOTECHNOLOGY TRUST PLC

("IBT" or the "Company")

 

Investment Management Update

The Board of IBT and SV Health Managers LLP ("SV Health"), the Company's Fund
Manager and AIFM, are today announcing that SV Health has informed IBT that it
wishes to focus on its core healthcare venture business.

The Board is pleased that IBT's differentiated strategy, which offers
investors access to the sector using an actively managed, diversified approach
and also an attractive dividend yield, has been delivering strong returns; and
believes that the investment case for global biotechnology is compelling.
 IBT has performed well under the management of the joint lead fund managers
at SV Health, Ailsa Craig and Marek Poszepczynski, who have expressed their
willingness to continue as joint lead managers of the Company in a different
capacity.

The Board has instructed its advisers to commence an independent process to
review the Company's options to ensure continuity of shareholders' exposure to
the sector for the long term. A further update to shareholders will be
provided in due course.

IBT and SV Health have agreed that SV Health's fund managers Ailsa Craig and
Marek Poszepczynski will continue to manage the quoted portfolio and Kate
Bingham and Houman Ashrafian will continue to manage the unquoted assets of
IBT during this process.

Kate Cornish-Bowden, Chair of IBT, commented: "IBT has worked with the SV
Health business since 2001 and we would like to thank the team for their
successful management of the Company over that period. In the near term the
Board will consult major shareholders regarding the Company's future, and in
due course we look forward to updating shareholders on specific proposals."

Dame Kate Bingham, Managing Partner of SV Health, commented: "SV Health is now
managing $2.2 billion of private healthcare assets across its group and the
time has come for us to focus on these core strategies. We will be working
with the Board of IBT to ensure a smooth transition over the coming months and
look forward to a continued relationship with IBT as an investor in SV
Health's venture and crossover funds."

In accordance with the provisions of the investment management agreement
between the parties (the "IMA"), SV Health has given the Company notice of
termination, which will take effect on 9 February 2024 unless agreed otherwise
by both parties. In the light of the review process discussed above, the IMA
has been amended to acknowledge that should the Company pursue a course of
action prior to 9 February 2024 under which it will no longer require SV
Health to manage IBT, good faith negotiations will be entered into to agree
termination of the IMA on an earlier date.  It is intended that SV Health
will provide ongoing investment management services to IBT following
termination of the IMA in respect of its current portfolio of unquoted assets
in consideration for payment of a performance fee on the same terms as set out
in the IMA.

Additionally, the IMA has been amended to clarify that in circumstances where
SV Health gives notice to terminate the IMA, SV Health will be entitled to the
annual performance fee calculated until the termination date of the IMA
(capped at 2% of NAV) and any deferred performance fees (capped at 4% of NAV)
subject to a cap on the aggregate amount payable on termination of 4.99% of
NAV. The previous position under the IMA was not clear and could be
interpreted such that, in the circumstances where SV Health gives notice, SV
may not be entitled to a performance fee in respect of the performance period
ending on the termination date nor any deferred performance fees outstanding
on the termination date.  SV Health is a related party of IBT under the
Listing Rules and this amendment represents a  smaller related party
transaction with SV Health in accordance with Listing Rule 11.1.10 R.

For further information, please contact:

Corporate Broker - Numis

Nathan Brown                   +44 (0)20 7260 1426 / +44
(0)7795 964 870

Vicki Paine                          +44 (0)20 7260
1256 / +44 (0)78 8431 1486

Financial PR - KL Communications

Charles Gorman                               +44
(0)20 3995 6673 / +44 (0) 7795 977 967

Company Secretary - Link Company Matters

Indu Shastri                        +44 (0)7936 045789

LEI: 213800N1QUJ744P76D11

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