Weiss Korea Opportunity Fund - Results of Realisation Opportunity

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF IRELAND OR SOUTH AFRICA OR TO U.S. PERSONS

Weiss Korea Opportunity Fund Ltd.
("Weiss Korea" or "the Company")

Results of Realisation Opportunity

As described in the circular to Shareholders published on 20 March 2017, the Company made available a Realisation Opportunity enabling Shareholders to elect to realise all or a part of their shareholding on or prior to the fourth anniversary of the Company’s admission to AIM.

The Company today confirms that valid elections have been received from Shareholders totalling 8,044,769 Ordinary Shares, representing approximately 8.6 per cent. of the Company’s issued share capital, and such participating Ordinary Shares have been redesignated as Realisation Shares. 

None of the Directors and personnel associated with the Investment Manager elected to participate in the Realisation Opportunity in respect of all or any part of their respective shareholdings, and of the elections received in connection with the Realisation Opportunity, 86 per cent. was represented by a single shareholder.

With effect from today, the Realisation Date, the Company’s current portfolio has been divided into two pools:

i)        The Continuation Pool; and

ii)       The Realisation Pool.

Each Pool will be accounted for as a separate sub-portfolio, with assets and liabilities comprised in the Company’s current portfolio being apportioned to the Realisation Pool pro rata to the number of participating Ordinary Shares in respect of which Realisation Elections have been validly received.  Those assets in the current portfolio that are not divisible pro rata due to their nature have been apportioned between the Pools as the Board in its sole discretion deems fair and reasonable.

The assets comprising the Realisation Pool will be managed by the Investment Manager as follows:

a)   assets comprised in the Realisation Pool will be managed in accordance with an orderly realisation programme with the aim of making progressive returns of cash to holders of Realisation Shares; and

b)   the Board may authorise the sale of assets to the Continuation Pool from the Realisation Pool in order to return cash to holders of Realisation Shares.

The assets apportioned to the Continuation Pool will continue to be managed by the Investment Manager in accordance with the Company’s investment policy.

Further announcements in respect of the returns of cash to holders of Realisation Shares will be made as and when appropriate. In particular, and as set out in the circular to Shareholders, holders of Realisation Shares should note that it is difficult to estimate how long it will take to sell all of the assets comprising the Realisation Pool and distribute cash to Shareholders holding Realisation Shares.  The Realisation Shares will not be listed or admitted to AIM.

Defined terms in this announcement shall have the same meaning as terms defined in the circular dated 20 March 2017.

This announcement contains inside information.

Norman Crighton, Chairman of Weiss Korea, commented:

“The Board and the Investment Manager believe that the significant continuing interest is consistent with their thesis about the valuation of Korean preferred shares. As of 28 April 2017, the underlying portfolio had a weighted average discount to the corresponding common shares of 39% and a price to earnings ratio of only 8.3x, which the Board and Investment Manager believe offer continuing investors a compelling long-term investment opportunity.  In addition to the Realisation Opportunity, the Company has previously repurchased a cumulative 10.6% of the original shares outstanding as part of the Company’s discount management and remains committed to the highest standards of corporate governance.”

For further information, please contact:

N+1 Singer James Maxwell/ Gillian Martin – Nomad James Waterlow – Sales	[phone]
Northern Trust International Fund Administration Services (Guernsey) Limited Sam Walden	[phone]

Website 

www.weisskoreaopportunityfund.com

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