(MENAFN- The Peninsula) DOHA: The London-listed Qatar Investment Fund (QIF), which invests largely in Qatari-listed stocks, said yesterday that the directors have resolved to put forward the proposal to implement the tender offer in the fourth quarter of 2016.
In a circular issued yesterday, QIF explained the terms of the tender offer to the shareholders to purchase up to 12 percent of the company";s issued share capital.
In April 2015, the Fund had come up with what it claimed as a unique offer (Tender Offer) to shareholders. 'The board is aware that the shares are tightly held and that therefore liquidity in the shares can, at time, be limited. This tender offer is designed to enable those shareholders, other than restricted shareholders, who wish to realise a portion of their holding of shares to have the opportunity to do so,” it said yesterday.
The total number of shares to be purchased under the tender offer will not exceed 14,045,544 shares, representing approximately 12 percent of the company";s issued share capital, including treasury shares.
Shareholders, other than restricted shareholders, on the register on the record date will be able to tender a number of their shares, up to the maximum of that shareholders"; basic entitlement; shareholders on the register on the record date will also be entitled to tender additional shares in excess of their basic entitlement. The tender price will be the price of share which represents an amount equal to a discount of one percent to Formula Asset Value as at the calculation date.
The tender price will be paid to shareholders in US dollars and will be effected by the dispatch of cheques drawn on an account of a branch of a United Kingdom clearing bank, or the crediting CREST accounts as appropriate, QIF explained.
Implementation of the tender offer will require approval by shareholders at the extraordinary general meeting, which is to be held at 10.30 am on November 17, 2016. QIF is a closed-ended investment company which was incorporated in the Isle of Man on June 26, 2007.
In May 2011 the fund moved to the main market of the London Stock Exchange (LSE) , with the aim of broadening the potential investor base and improving the liquidity of the shares.The investment objective of the company is to invest primarily in Qatari equities and in listed companies in other GCC countries.
As at October 18, 2016, the unaudited Asset Value per Ordinary share was $1.2736 and the closing mid-market share price was $1.07.
The company";s NAV per share has declined from $1.4635 at October 2015 to $1.2701 at October 6, 2016, which is equal to a decrease of 13.2 per cent. This compares to the 11.9 percent decrease in the Qatar Stock exchange (QSE) Index over the same period. As of December 31, 2015, QIF";s top five holdings include Qatar National Bank, Industries Qatar, Masraf Al Rayan, Gulf International Services, Qatar Electricity and Water Company.
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