Port Erin Biopharma Investments Limited complete successful Tender Offer
February 6, 2015
Kerman & Co LLP is pleased to announce that long-standing client Port Erin Biopharma Investments Limited, the AIM listed investment company focused on bio-pharma investments, has completed a tender offer to return cash to shareholders.
Following a special meeting of shareholders on 11 November 2013, shareholders approved a proposed distribution of assets by the company. On 13 January 2015, Port Erin published and sent to shareholders a circular setting out the terms of a tender offer in respect of the company’s interest in the Magna Biopharma Income Fund.
In response to the Tender Offer circular, the company received acceptances from, in aggregate, 50.68 per cent. of shareholders, and completed the redemption of 10,669,278 shares (representing 31.5 per cent. of issued shares) at a price of £0.1587 (15.87 pence).
The distribution was achieved by the company transferring some of its existing assets into the Magna Biopharma Investments Fund, a UCITS Fund offering daily liquidity at the stated net asset value of the fund on the date of redemption. This meant that, on redemption, the company converted assets that had been trading at a significant discount on AIM, into real cash, with no discount to the asset value (allowing a distribution to shareholders at net asset value rather than the share price of the Company on AIM).
Michael Corcoran, a partner in the Corporate team at Kerman & Co. lead the transaction and commented: “So many AIM shares are trading at depressed prices, often not reflecting the underlying value of assets held by the company. This problem is even more pronounced with investing companies, and is a source of enormous frustration for shareholders and directors. The use of the UCITS Fund by Port Erin was an enormous success and shareholders were extremely pleased at the proactive approach of management to ensuring full shareholder value was realised.”