Business
Crystallisation of Business Unit & Issue of Shares
Crystallisation of Business Unit & Issue of Shares.
About this update from Polar Capital Holdings Plc
[{"type":"text","content":"\n\nPolar Capital Holdings plc\n12 November 2024\nCrystallisation of Business Units and Issue of Shares\n \nPolar Capital Holdings plc (\"Polar Capital\" or the \"Company\") announces the crystallisation of Preference Shares held by David Keetley, the lead manager of the Global Convertible Bond Fund.\n \nThese crystallisations are expected to be immediately earnings enhancing for shareholders. Based on the results for the financial year ended 31 March 2024, the combined impact of the crystallisation would have been an earnings enhancement of around 0.1p per share1.\n \nBackground\nAs set out at the time of the Company's admission to AIM, Polar Capital has structured its fund management operations in such a way that the fund management teams are placed in separate business units. Each business unit is a separate profit centre and the fund managers responsible receive each year a payment which comprises a share of their unit's core operating profit (operating profit before performance fees and related distributions) and performance fees.\n \nIn addition to the remuneration structure described above, certain fund managers and their teams are offered the prospect of an interest in the capital of the Company through the purchase of an individual class of preference shares in Polar Capital Partners Limited, a wholly owned subsidiary of the Company. These preference shares have been structured in such a way as to become convertible upon the occurrence of certain events, known as crystallisation events, into cash or, at the option of the Company, ordinary shares at a ratio that is intended to be earnings enhancing for the Group. At the election of the holders of the preference shares, they may crystallise all or part of their preference shares, or retain the balance, if any, for a further crystallising event at a subsequent date. \n \nFrom the effective date of crystallisation, the fund managers concerned cease to be eligible to receive their share (or the relevant proportion in the case of a partial crystallisation) of the business unit's core operating profit which has been crystallised and simultaneously going forward will receive a reduced interest in their performance fees.\n \n \nGlobal Convertible Bond Fund unit\nMr David Keetley has elected to crystallise the remaining o...