Notice of Compulsory Partial Redemption of Shares

 
TIDMTIC 
 
Registration Number : 42750 
 
            TAPESTRY INVESTMENT COMPANY PCC LIMITED (the "Company") 
 
 
               Notice of compulsory partial redemption of Shares 
                                      and 
                       an update on proposed liquidation 
 
15 November 2010 
 
Notice  of compulsory partial redemption  of participating redeemable preference 
shares in the Multi-Strategy (GBP) cell of the Company ("Shares") 
 
Further  to the approval by the  Company's shareholders of the Managed Wind-Down 
of  the Company (as more particularly described in the circular that was sent to 
Shareholders  on 21 August  2009 (the "Circular"))  at the Extraordinary General 
Meeting  and Class Meeting held on  11 September 2009 and in accordance with the 
Company's  Articles of Incorporation,  the Company today  announces that it will 
return   GBP9,247,146 (equivalent to approximately  46.65p per Share) to holders of 
Shares  on  30 November  2010 (the  "Redemption  Date")  by  way of a compulsory 
partial  redemption  of  Shares  (the  "Redemption").   The  Redemption  will be 
effected pro rata to holdings of Shares on the register at the close of business 
on  the Redemption Date.   Based on the  final Net Asset  Value per Share on 30 
September  2010 (being  the  Net  Asset  Value  Date),  and  having deducted the 
anticipated  costs incurred in  connection with the  Redemption, 43 per cent. of 
the Company's issued share capital will be redeemed on the Redemption Date (that 
is  43 Shares for every 100 held  (the "Redemption Ratio")).  Fractions produced 
by  the Redemption Ration will  not be redeemed and  such Shares shall continue. 
 The price at which each Share will be redeemed will be 108.4834p. 
 
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 8 November 2010 pursuant to the Managed Wind-Down, less any funds used 
or  required to settle  any liabilities (including  the estimated ongoing day to 
day running costs of the Company). 
 
Following  the Redemption, a total of 87.4p per Share will have been returned to 
Shareholders (calculated with reference to the Company's issued share capital of 
83,576,840 as at the date of approval of the Managed Wind-Down). 
 
Shares 
 
As at today's date, the Company has 19,823,301 Shares in issue of which none are 
held  in Treasury.  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 GG00B3XVTM50  (the "Old  ISIN") will  expire.  The  new ISIN number 
GG00B5NP8N53  (the "New ISIN") in respect of the remaining Shares which have not 
been  redeemed  will  be  enabled  and  available for transactions on 1 December 
2010.  Up  to and including the Redemption Date, Shares will be traded under the 
Old ISIN and as such, a purchaser of such Shares would have a market claim for a 
proportion  of the redemption proceeds.   CREST will automatically transform any 
open  transactions as at the  Redemption Date (which is  the record date for the 
purposes of the Redemption) into the New ISIN. 
 
Copies  of the redemption notice  which is being sent  to shareholders today are 
available from the Company's website. 
 
Proposed Liquidation 
Further  to the  announcement made  by the  Company on 7 October 2010, the Board 
expects  the  Company's  Shares  will  be  de-listed  and  the  Company put into 
liquidation  in February / March 2011 (the "Liquidation"), with a circular being 
despatched to shareholders in January  in order to convene the necessary general 
meeting  to  implement  the  Liquidation.   It  is  expected that any liquidator 
appointed  will seek to maximise the value  of cash collected from the Company's 
remaining  portfolio by continuing the present policy of the Company rather than 
seeking  to sell  the portfolio  in the  secondary market  at a  discount to its 
carrying  value.  It  is anticipated  that upon  the liquidation  taking effect, 
there  will be a first distribution in  liquidation of approximately  GBP2.5m -  GBP3m 
(subject to changes in underlying manager liquidity expectations and the GBP/USD 
exchange rate). 
 
All  capitalised terms  have the  meaning given  to them  in the Circular unless 
otherwise stated. 
 
Contacts for queries: 
 
Tapestry Investment Company PCC Limited 
Mel Carvill (Chairman) 
01481 727111 
 
Kleinwort Benson (Channel Islands) Fund Services Limited 
Company secretary 
01481 727111 
 
Collins Stewart Europe Limited 
Andrew Zychowski 
Lucy Lewis 
020 7523 8000 
 
Collins  Stewart  Europe  Limited,  which  is  authorised  and  regulated by the 
Financial  Services  Authority,  is  acting  for Tapestry Investment Company PCC 
Limited  (the "Company")  and for  no one  else in  connection with  the matters 
detailed  in this announcement and will not  be responsible to anyone other than 
the Company for providing the protections afforded to clients of Collins Stewart 
or  for affording advice  in relation hereto,  or any other  matters referred to 
herein. 
 
 
 
[HUG#1462280] 
 
 
 
 
 
 
 
 
This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
 
Source: Tapestry Investment Company PCC Limited via Thomson Reuters ONE