The board of directors of ALTIN has disclosed the main terms of the issuance of put options announced on 18 July 2013.
The final strike price will be determined on 9 September 2013, indicatively at a 20 per cent premium over the then prevailing share price, but not higher that the NAV.
The solution chosen by the board of directors presents a double advantage for shareholders: a significant cash premium and an automatic increase of the NAV per share, as tended shares will ultimately be cancelled. The share price has already increased by 13.4 per cent in 2013, while the NAV rose by 4.8 per cent.
The strike price of the put options will be determined on 9 September 2013, indicatively at a 20 per cent premium over the prevailing share price at that date, but not higher than the NAV per share. The put options will be issued on 13 September 2013 (ex date). Each share will receive one option and 10 options will entitle the holder to exercise one share at the exercise price (strike price). The exercise period will end on 27 September 2013. The put options will be traded in USD on the SIX Swiss Exchange from 13 September to 26 September 2013, thus allowing investors to sell their options or to buy more options in order to tender more shares. The results of the share buyback will be announced on 27 September 2013. Tendered shares will be cancelled after AGM approval and, if all options are exercised as expected, this will effectively result in a 10 per cent capital reduction.
The issuance of these put options presents several benefits to shareholders. First, shareholders will receive tradable options with a significant intrinsic value. By selling or exercising them, shareholders will thus immediately receive a cash premium. Second, thanks to the 10 per cent capital reduction, the NAV per share will automatically increase. As the exercise period is short, the benefits for all shareholders will appear clearly and the impact on the discount should take place rapidly.
The discount has already diminished from 32.64 per cent at end 2012 to 27.07 per cent today.