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 \nRNS Number : 6491D Polar Capital Holdings PLC 11 October 2018 \n\n11 October 2018 Polar Capital Holdings plc\nCrystallisation of business unit and issue of shares\n \nPolar Capital Holdings plc (\"Polar Capital\" or the \"Company\") announces the crystallisation of a set of Preference Shares held by Dr Daniel Mahony and Gareth Powell, co-heads of the Polar Capital Healthcare Team and managers of the Polar Capital Healthcare Opportunities Fund, Polar Capital Healthcare Blue Chip Fund and Polar Capital Global Healthcare Trust plc. The crystallisation is in respect of the Healthcare Opportunities Fund and the Polar Capital Global Healthcare Trust plc, part of the Healthcare business unit. This crystallisation is expected to be immediately earnings enhancing for shareholders. Based on the results for the financial year ended 31 March 2018, the impact of the crystallisation would have been an earnings enhancement of around 3p 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, each fund management team is 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.\n \nFrom the effective date of crystallisation, the fund managers concerned cease to be eligible to receive their share of the business unit's core operating profit which ...