THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA AND THE UNITED STATES OR ANY OTHER JURISDICTION WHERE TO DO SO MAY RESULT IN THE CONTRAVENTION OF ANY REGISTRATION OR OTHER LEGAL REQUIREMENT OF SUCH JURISDICTION
14 June 2018
BlackRock Emerging Europe plc
Results of the Tender Offer
Further to the announcement on 23 May 2018, BlackRock Emerging Europe plc (the “Company”) today announces the results of the tender offer to purchase up to 100 per cent. of the Company’s ordinary shares (the “Tender Offer”).
A total of 21,821,195 ordinary shares were validly tendered under the Tender Offer, representing approximately 60.75 per cent. of the Company’s issued share capital, excluding shares held in treasury. On the basis of the last published net asset value (“NAV”), as at 12 June 2018, of 343.51 pence per ordinary share, the remaining assets of the Company following the Tender Offer would be approximately £48 million, which, as set out in the circular published by the Company on 23 May 2018 (the “Circular”), is below the minimum level which the Board deems necessary for the Company to continue. The Board has, therefore, elected not to proceed with the Tender Offer and revised proposals will be put forward to shareholders, which will include a full cash exit at NAV less applicable costs and will be announced in due course.
As such, the General Meeting due to be held on 20 June 2018 will no longer take place.
The portfolio will continue to be managed in accordance with the Company’s investment policy until such time as alternative proposals are approved by shareholders.
Commenting on the results of the tender, Chairman of the Board Neil England said:
‘’The Board of BlackRock Emerging Europe have always recognised its role is to act in the best interests of our shareholders. We have regularly consulted with our major shareholders to understand their objectives and used their input to guide our strategy and policies.
"Our strategy has allowed our well-regarded investment managers to take conviction based positions and be able to invest with confidence for a fixed period of time.
“This strategy has delivered value to shareholders. Since BlackRock took over the mandate in 2009, our shareholders have seen the value of their investments rise by close to 140%. This is more than double the return of the reference index. Our Company has also been a top decile performer in comparison with our open-ended peers as well as the best performer in the AIC European Emerging Markets closed-ended peer group over this period and has enjoyed the tightest discounts to Net Asset Value.
“We fully understand that following these very strong absolute and relative returns, many shareholders have opted to take profits on their positions. It is their decision as to where they chose to invest their money and they should be free to seek out the most promising investment opportunities, wherever they are to be found.
“I would like to congratulate our Portfolio Managers, Sam Vecht and Chris Colunga, for producing such excellent results and thank BlackRock and my fellow Board members for their diligence and commitment to the effective running of the Company in the interests of shareholders.
“The current tender offer will now be withdrawn and we will make new proposals to shareholders which will include a full cash exit.”
In light of the outcome of the tender offer, the Directors of the Company have asked Mr England to remain on the Board as Chairman to provide continuity while the Board considers alternative proposals to put forward to shareholders. Mr England will stand down as Chairman and a Director of the Company at the time such alternative proposals are approved by shareholders or, if such proposals include the liquidation of the Company, the date that the Company enters into liquidation. It had previously been announced that Mr England would retire as Chairman at the AGM on 20 June.
Defined terms used in this announcement have the meanings given in the Circular unless the context otherwise requires.
|BlackRock Investment Management (UK) Limited
|020 7743 3000|
|020 3100 0000|
This announcement contains information that is inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014, and is being made by the Company solely to comply with its regulatory disclosure obligations.