Investcorp announces shareholding rationalization plan
The shareholders of Investcorp Bank have approved the implementation of a broad-based plan designed to achieve closer alignment with a strong base of committed shareholders that have a long-term view towards the continued growth and development of the company.
Discussed at the recent Extraordinary General Meeting, the plan involves a share consolidation as a result of which 1,000 current ordinary shares will be consolidated into one new ordinary share, and a minimum shareholding requirement as a result of which each shareholder will be required to hold a minimum of 100 new ordinary shares after the consolidation.
The share consolidation and minimum shareholding requirement will not increase or reduce Investcorp's total share capital and will not affect the rights of Investcorp's outstanding preference shares.
Shareholders will be entitled to purchase, if needed, additional shares from Investcorp's Treasury share pool to top-up to the minimum shareholding requirement level or, if already above that level, to round-up existing shareholdings to a multiple of 1,000 shares so as not to be left with fractional shares after the share consolidation.
Investcorp will repurchase, at fair value, shares held by shareholders who opt not to top-up and, as a result, either fall below the minimum shareholding requirement or own fractional shares after the share consolidation. Full details related to the implementation of this plan, including the top-up and repurchase mechanisms, will be announced in major regional newspapers on March 15.
The principal objective of the above plan is for Investcorp to establish a closer relationship with its shareholders, and work together towards strengthening its position as a provider of alternative investments. Through the implementation of the share consolidation and the minimum shareholding requirement, Investcorp aims to construct a shareholder base that is more in line with its strategic objectives and achieves closer alignment of interests between providers of capital, investors and management, all of whom have a long-term investment perspective in terms of seeking capital growth rather than short-term trading profits.
In order to facilitate close coordination and communication with the re-focused shareholder base, Investcorp also proposes to adopt a new periodic reporting standard, which was approved by shareholders at the Extraordinary General Meeting, subject to regulatory approval.
Investcorp is a global investment group with offices in Bahrain, London and New York. The firm has four lines of business: corporate investment, real estate investment, asset management and technology investment. It was established in 1982 and has since completed transactions with an aggregate value of approximately $20 billion.
In Europe, Investcorp and its clients currently own corporate investments that include Avecia, Gerresheimer Glas and Welcome Break. In the United States, Investcorp and its clients currently own corporate investments that include Neptune, Jostens and Synthetic Industries. — (menareport.com)
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