Castle Alternative Invest, a fund of hedge funds investment company listed on the SIX Swiss Exchange and London Stock Exchange, has completed the second line share buyback programme initiated on 21 June 2010.
The second line on the SIX Swiss Exchange will be closed after market hours on 22 October 2010.
Pursuant to this programme, Castle Alternative Invest has repurchased 2,225,464 shares with a total consideration of CHF31.9m representing 5.78 per cent of the shares currently in issue. The average purchase price per share was CHF14.34. This represents 11.29 per cent of the shares that will be in issue after the capital reorganisation.
It is intended that a resolution be proposed to the 2011 annual general meeting to reduce the capital of the company by the amount of shares acquired through the second line share buyback programme. After such cancellation, the company would have 36,275,536 shares in issue, currently corresponding to a market capitalisation of approximately CHF468.0m.
However this capital reduction will be in addition to the capital reorganisation announced on 16 September 2010 which is expected to complete on or around 21 December 2010.
It remains the directors’ intention that the 15 per cent average discount threshold and the maximum repurchase price of up to 95 per cent of prevailing net asset value per share will continue to apply to any possible future share repurchases for cancellation which result from the company’s stated discount control provision.
The company was originally listed on the SIX Swiss Exchange in January 1997 and additionally listed on the London Stock Exchange on 5 June 2009. In US Dollar terms, Castle Alternative Invest’s net asset value has achieved a net annualized return of 6.86 per cent since inception.
Thomas Weber, partner and head of hedge fund investment management at LGT Capital Partners, has been lead portfolio manager since inception.
Mark White, general manager of Castle Alternative Invest, says: “Since the intention to list CAI in London and implement a discount control policy was announced, the discount at which the company’s shares trade has narrowed from more than 25 per cent to around 15 per cent and the shares are now trading in-line with the listed fund of hedge fund sector as a whole. CAI has a longstanding track record of delivering consistent returns with low correlation to traditional asset classes and we believe it is an attractive vehicle for investors seeking diversified exposure to hedge funds.”
