RAB confirms delisting
Hedge fund manager RAB Capital has outlined its plans to delist, as it sought to close a troubled chapter of tumbling assets and defecting clients.
Shareholders are being offered 10 pence cash for each RAB share or have the option to swap them on a one-for-one basis for unlisted shares in NewCO, a company being set up as the ultimate owner of the hedge fund manager.
RAB said it expected the maximum cash sum to be paid to shareholders under the possible buyout would be 27 million pounds.
“The Board has concluded that in light of poor results, significant redemptions… and further anticipated redemptions, third party assets under management will fall to a level that will make RAB’s business model difficult to sustain as a publicly quoted company,” RAB said in a statement.
Once the darling of the hedge fund industry after returns of more than 1,000 percent in 2003, RAB saw its shares plummet last month after announcing further client exits and saying it may delist.
RAB also said the independent directors are taking into account a “liquidation analysis” of the company.
“This includes, but is not limited to, assessing the full costs associated with winding the company down in an orderly manner,” the company said.