3 May 2011 16:01
FRM Credit Alpha Limited
(the "Company")
Notice of compulsory partial redemption of shares
Further 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 £29,500,000 (equivalent to approximately 44.61 pence per share) 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 March 2011). 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.
The 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 50.36 per cent. of the Company's issued share capital (that is 50.36 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.
The 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 3 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.
The Company currently has 66,133,577 shares in issue. All of the shares redeemed on the Redemption Date will be cancelled.
The shares will be disabled in CREST on the Redemption Date and the existing ISIN number GG00B1QH6J27 (the "Old ISIN") will expire. The new ISIN number GG00B3ZPG020 (the "New ISIN") in respect of the remaining shares which have not been redeemed will be enabled and available for transactions from and including 12 May 2011. Up to and including the Redemption Date, shares will be traded under the Old ISIN and as such, a purchaser of such shares may have a market claim for a proportion of the redemption proceeds following the activation of the New ISIN. CREST will automatically transfer any open transactions as at the Redemption Date to the New ISIN.Following this first distribution of cash to shareholders pursuant to the managed wind-down, the management fee charged to the Company by FRM Investment Management Limited will be based on invested assets only (i.e. excluding cash). In addition, no performance fee will be payable.
Enquiries:
Chris Brierley 020 7968 6136
(Financial Risk Management Limited)
Jane Lewis 020 3100 0295
(Winterflood Investment Trusts)