Business
Update - Notice of compulsory redemption of shares
Update - Notice of compulsory redemption of shares.
About this update from Cavendish Plc
[{"type":"text","content":"\n \nRNS Number : 3931G FRM Credit Alpha Limited 11 May 2011 \n \n\nFRM Credit Alpha Limited\n(the \"Company\")\n \nUpdate - Notice of compulsory partial redemption of shares\nAs a result of the Company receiving further proceeds from the redemption of its underlying investments, the Directors are pleased to announce that the Company is now in a position to return more cash to shareholders than stated in the announcement dated 03 May 2011.\nFurther to the approval by the Company's shareholders of the managed wind-down proposals as described in the circular to shareholders dated 4 February 2011, the Company has resolved to return £31,000,000 by way of a compulsory partial redemption of shares (the \"Redemption\") at a price of 88.6 pence (the Company's NAV per share as at 31 March2011). Payments of redemption monies are expected to be effected either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form) by 18 May 2011. Certificated shareholders must send all of their share certificates to the Company's Registrar in order to receive their redemption monies.\nThe Redemption will be effected pro rata to holdings of shares on the register at the close of business on 11 May 2011 (the \"Redemption Date\"). Approximately 52.92 per cent. of the Company's issued share capital (that is 52.92 shares for every 100 held (the \"Redemption Ratio\")) will be redeemed on the Redemption Date. Fractions of shares produced by the Redemption Ratio will not be redeemed and so the number of shares to be redeemed for each shareholder will be rounded down to the nearest whole number of shares. For information the compulsory redemption is equivalent to approximately 46.88 pence per share. \nThe amount to be applied to the partial redemption of shares comprises the monies from the realisation of the Company's investments received up to and including 10 May 2011 pursuant to the managed wind-down of the Company, less the costs and expenses of this partial redemption and cash being retained for the Company's working capital requirements. The costs and expenses of this partial redemption are estimated not to exceed £5,000.\nThe Company currently has 66,133,577 shares in issue. All of the shares redeemed on the Redemption Date will be ...