Compulsory Redemption of 1X shares

 

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RNS Number : 2370Q 
New Star RBC Hedge250 IDX (1X GBP) 
06 April 2009 
 

 
 
 
 
 
 
 
 
New Star RBC Hedge 250 Index Exchange Traded Securities PCC Limited 
 
 
06 April 2009 
 
 
Compulsory redemption of 1X Shares 
 
 
Following the receipt of redemption requests in respect of the 1 July 2009 
redemption it is expected that the total NAV of the 1X Cell will fall to about 
US$ 14 million. The Board and the Manager believe that the costs associated with 
the management of the 1X Cell mean that it is not practical to continue running 
the 1X Cell and the costs will become punitive on the 1X Shareholders. 
 
 
Accordingly, the Directors and the Manager have concluded that the interests of 
shareholders would be best served by a compulsory redemption of the 1X Shares at 
Net Asset Value on 30 June 2009, less associated costs. These costs will include 
those necessary for the voluntary winding-up of the Company following this 
redemption. At the Cell Meetings and Extraordinary General Meeting held on 13 
January 2009, resolutions were passed to amend the Company's articles so as to 
permit the Board to compulsorily redeem 1X Shares in the manner provided in the 
Articles. 
 
 
The 1X Shares will be redeemed on 1 July 2009.  Admission of the 1X Shares to 
trading on the LSE and to the Official List are expected to be cancelled at 8 
a.m. on 2 July 2009. The Register in respect of the 1X Shares will be closed 
from 5.00 p.m. on 30 June 2009 and the last date for normal dealings on the LSE 
will be 26 June 2009. Thereafter dealings should be for cash settlement only and 
will be registered in the normal way if the transfer, accompanied by the 
documents of title, is received by Capita Registrars by 5.00 p.m. on 30 June 
2009. If Shareholders dispose of their 1X Shares otherwise than through the LSE 
they must make their own arrangements with the other parties concerned as 
regards entitlements to redemption proceeds to be issued or distributed (as the 
case may be). 
 
 
1X Shareholders holding certificated Shares will be sent a cheque, which is 
expected to be despatched as soon as reasonably practicable after 15 August 2009 
and normally by 31 August 2009. This is due to the fact that, in normal 
circumstances, the Index Administrator will determine the final Index level for 
the end of each month on or about the 45th calendar day following the end of the 
month and the full redemption proceeds will normally be dispatched within 15 
days after the publication of the final Index level by the Index Administrator. 
 
Settlement of any cash payable in respect of 1X Shares in uncertificated form 
will be made through the creation of a payment obligation in favour of the 
relevant Shareholder's payment bank in accordance with CREST payment 
arrangements as soon as reasonably practicable after 15 August 2009 and normally 
by 31 August 2009. 
 
 
As set out in the Circular sent to shareholders dated 22 December 2008 
("Circular") and without limitation, the Swap Counterparty reserves the right to 
limit aggregate reductions by the Company and all of its other counterparties 
for any calendar quarter end on a pro-rata basis to no greater than 20 per cent. 
of the Index Notional Amount (a "Gate"). If a Gate is imposed, then any 
reduction which has not been fulfilled will be scheduled to occur on the 
subsequent calendar quarter end on a pro-rata basis. The process will be 
repeated until all reductions have been fulfilled. 
 
In addition, to the extent that Index funds representing more than 5 per cent. 
of the Index by Fund Weight for a given month (a) have limited or suspended 
redemptions, and/or (b) do not provide the Index Administrator with NAV Data, an 
Index Suspension Event shall be deemed to be in effect. In the event of an Index 
Suspension Event, the Index Administrator may delay determination and 
publication of the final Index Level for such month. 
 
 
In the event of a Gate being imposed or an Index Suspension Event settlement of 
the redemption proceeds in respect of the 1X Shares will be delayed. In such 
event the Company will make a Regulatory News Announcement. 
 
 
Expected Timetable 
 
+-----------------------------------------+------------------------------+ 
| Notice to terminate the swap            | 6 April 2009                 | 
| arrangements in respect of 1X Cell      |                              | 
| given                                   |                              | 
+-----------------------------------------+------------------------------+ 
| Termination of the swaps                | 30 June 2009                 | 
+-----------------------------------------+------------------------------+ 
| Valuation Day                           | 30 June 2009                 | 
+-----------------------------------------+------------------------------+ 
| 1X Register closed                      | 5.00 p.m. on 30 June 2009    | 
+-----------------------------------------+------------------------------+ 
| Redemption of 1X Shares                 | 1 July 2009                  | 
+-----------------------------------------+------------------------------+ 
| Cancellation of admission of 1X Shares  | 8.00 a.m. on 2 July 2009     | 
| to the Official List and trading on the |                              | 
| LSE                                     |                              | 
+-----------------------------------------+------------------------------+ 
| Final Index level published             | by 15 August 2009            | 
+-----------------------------------------+------------------------------+ 
| Determination of final NAV              | 15 August 2009               | 
+-----------------------------------------+------------------------------+ 
| Cheques despatched to Shareholders and  | Early September 2009         | 
| CREST payments                          |                              | 
+-----------------------------------------+------------------------------+ 
 
For further information, please contact: 
Donald Pepper 
New Star Asset Management 
Tel. [phone] 
 
David Benda / Nathan Brown 
Numis Securities Limited 
Tel. [phone] / 1426 
 
Notes 
 
The information in this announcement should be read in conjunction with the full 
text of the Circular. Capitalised terms used in this announcement shall, unless 
the context otherwise requires, bear the meaning given to them in the Circular. 
 
This announcement should not be construed as advice relating to legal, taxation 
or any other matters and does not constitute a recommendation to sell or the 
solicitation of an offer to subscribe for or buy, nor shall there be any sale 
of, any securities in any jurisdiction in which such offer, solicitation or sale 
would be unlawful or would impose any unfulfilled registration, publication or 
approval requirements on the Company or Numis Securities Limited. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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