BH Macro Limited Launch of Initial Issue and Issuance Programme

 
TIDMBHMG TIDMBHMU 
 
THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES OR TO 
ANY US PERSON, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH 
AFRICA, ANY EUROPEAN ECONOMIC AREA STATE OR ANY OTHER JURISDICTION IN WHICH ITS 
DISTRIBUTION MAY BE UNLAWFUL. 
 
This announcement is an advertisement and not a prospectus for the purposes of 
the Prospectus Regulation Rules of the Financial Conduct Authority ("FCA") or 
otherwise. Investors should not subscribe for or purchase any securities 
referred to in this announcement except solely on the basis of the information 
contained in the prospectus proposed to be published by BH Macro Limited 
(comprising a summary, registration document and securities note, together with 
any supplementary prospectus, if relevant) including the risk factors set out 
therein. Once published, a copy of the prospectus will be available for 
inspection at BH Macro Limited's registered office and website at 
www.bhmacro.com (subject to certain access restrictions) and at the National 
Storage Mechanism via https://data.fca.org.uk/#/nsm/nationalstoragemechanism. 
 
                 THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION 
 
                       BH MACRO LIMITED (the "Company") 
 
   (an authorised closed-ended collective investment scheme established as a 
    non-cellular company limited by shares under the laws of Guernsey with 
                          registration number 46235) 
 
                           LEI: 549300ZOFF0Z2CM87C29 
 
 Initial Placing, Intermediaries Offer and Offer for Subscription and Issuance 
                                   Programme 
 
                          Proposed Share Sub-division 
 
      Publication of Circular and Notice of Extraordinary General Meeting 
 
The board of directors (the "Directors" and, collectively, the "Board") of BH 
Macro Limited (the "Company") is pleased to announce the launch of an initial 
placing (the "Placing"), intermediaries offer (the "Intermediaries Offer") and 
offer for subscription (the "Offer for Subscription" and, together with the 
Placing and the Intermediaries Offer, the "Initial Issue") of new ordinary 
shares of no par value each in the capital of the Company ("Shares") which may 
be denominated as Sterling shares (the "Sterling Shares") or US dollar shares 
(the "US Dollar Shares") at a price per Share of the relevant class equal to 
the latest estimated net asset value per Share of the relevant class as at the 
closing date of the Initial Issue (currently expected to be 10 February 2023) 
(the "Initial Closing Date") plus a premium of two per cent. (the "Initial 
Issue Price"). 
 
The Company also announces a proposed publication of a prospectus (the 
"Prospectus") and circular to Shareholders in connection with the Initial Issue 
and an Issuance Programme (with a maximum total issuance under the Initial 
Issue and the Issuance Programme of 220 million new Shares, assuming that that 
the Share Sub-Division described below becomes effective). 
 
The Company will invest the proceeds of the Initial Issue (net of working 
capital requirements) in Brevan Howard Master Fund Limited (the "Master Fund") 
in accordance with the Company's investment policy. 
 
While the capacity of the Master Fund to accept new investment may vary from 
time to time, the Manager has agreed with the Company to procure that the 
Master Fund will accept new investment by the Company of the aggregate net 
proceeds and each subsequent issue under the Issuance Programme, subject to any 
limitations on the Master Fund's capacity as may be generally applied from time 
to time. 
 
The Company is also announcing the proposed sub-division of its Shares, so that 
each existing Share is replaced by ten Shares of the same currency class, in 
order to assist in liquidity of the Shares (the "Share Sub-Division") and 
certain amendments to the terms of the management agreement between the Company 
and the Manager (the "Management Agreement") and the terms of the Company's 
investment in the Master Fund. in order to reflect the increased investment of 
the Company in the Master Fund as a result of the Initial Issue and the 
Issuance Programme. 
 
Initial Issue Highlights 
 
·    The premium to estimated net asset value represented by the Initial Issue 
Price is less than the average premium to net asset value at which the Shares 
have been trading at recently. For comparison, as at 20 January 2023, the 
Sterling Shares have traded at an average premium to net asset value of 11.1 
per cent. / 12.3 per cent. / 10.7 per cent. over the last twelve, six and three 
months respectively. The US Dollar Shares have traded at an average premium to 
net asset value of 11.5 per cent. / 12.5 per cent. / 10.6 per cent. over the 
same time periods. 
 
·    The Directors believe that the launch of the Initial Issue and the 
Issuance Programme are  very significant and important developments for the 
Company, which should lead to a significant increase in the Company's market 
capitalisation and the liquidity in the Shares, as well as spreading the 
Company's fixed costs over a wider share capital base. 
 
·    J.P. Morgan Securities plc (which conducts its UK investment banking 
activities as J.P. Morgan Cazenove) ("JPMC") is acting as Sole Bookrunner and 
Sole Sponsor in connection with the Initial Issue and the Issuance Programme. 
Kepler Partners LLP is acting as Intermediaries Offer Adviser and Placing Agent 
in connection with the Initial Issue. 
 
·    Applications will be made for Shares issued pursuant to the Initial Issue 
to be admitted to listing on the Premium listing segment of the Official List 
of the FCA and to trading on London Stock Exchange plc's main market for listed 
securities. 
 
·    The Initial Issue, which is not underwritten, is subject to the terms and 
conditions described in the Prospectus including, amongst other things, upon 
the approval of the Prospectus by the FCA (expected later today) and 
Shareholders passing the Issuance Resolutions at the Extraordinary General 
Meeting (as further described below). 
 
Issuance programme 
 
Assuming the requisite authorities are approved by Shareholders at the 
Extraordinary General Meeting, the Company will have the ability of raising 
additional capital by issuing further Shares, up to the maximum number of 
Shares available, by way of further issues (or sales from treasury) until 23 
January 2024 (the "Issuance Programme"). It is proposed that, in aggregate, up 
to 220 million new Shares (assuming that the Share Sub-Division described is 
approved at the Extraordinary General Meeting and becomes effective) may be 
issued as Sterling Shares or US Dollar Shares pursuant to the Initial Issue and 
the Issuance Programme. 
 
If the Share Sub-Division is not approved by Shareholders, up to 22 million new 
Shares, in aggregate, will be available to be issued pursuant to the Initial 
Issue and the Issuance Programme (to be denominated as either Sterling Shares 
or US Dollar Shares). 
 
Prospectus 
 
Further details will be set out in the Prospectus, which, once approved by the 
FCA, and together with a Circular, is expected to be available shortly (subject 
to certain access restrictions), on the Company's website at www.bhmacro.com. 
 
The Company will release a further announcement upon the publication of the 
Prospectus. 
 
Once published, a copy of the Prospectus will be submitted to the National 
Storage Mechanism and will be available for inspection at https:// 
data.fca.org.uk/#/nsm/nationalstoragemechanism. 
 
Application for admission 
 
Application will be made to the FCA and London Stock Exchange plc for the 
Shares to be issued pursuant to the Initial Issue to be admitted to the premium 
segment of the Official List of the FCA and to trading on London Stock Exchange 
plc's Main Market for listed securities ("Initial Admission"). It is expected 
that Initial Admission will become effective, and dealings commence in respect 
of the Shares issued in the Initial Issue, at 8.00 a.m. on or around 15 
February 2023. 
 
Share Sub-division 
 
The Share Sub-Division is subject to Shareholder approval at the Extraordinary 
General Meeting by way of special resolution (the "Sub-Division Resolution") 
and is conditional upon the sub-divided Shares issued pursuant to the Share 
Sub-Division being admitted to the premium listing segment of the Official List 
of the FCA and to trading on London Stock Exchange plc's Main Market for listed 
securities (the "Sub-Division Admission"). 
 
If approved by Shareholders, the Share Sub-Division would result in 
Shareholders holding ten new Shares for each existing Share they hold 
immediately prior to the Share Sub-Division. The new Shares of each class will 
carry the same rights in all respects as the existing Shares of the same class, 
including voting rights. The Share Sub-Division should have no impact on the 
Company's net assets as no change in the total aggregate value of the Company's 
shares will occur. 
 
Assuming that the Share Sub-Division is effective, the ticker symbols for the 
Sterling Shares and the US Dollar Shares will remain as BHMG and BHMU 
respectively, but the ISIN and SEDOL for the sub-divided Shares will change as 
follows: 
 
ISIN for the sub-divided Sterling Shares: GG00BQBFY362 
 
ISIN for the sub-divided US Dollar Shares: GG00BQBFY479 
 
SEDOL for the sub-divided Sterling Shares: BQBFY36 
 
SEDOL for the sub-divided US Dollar Shares: BQBFY47 
 
Assuming that the Share Sub-Division resolution is passed, the Share 
Sub-Division will become effective at Sub-Division Admission, which is expected 
to take place at 8.00 a.m. on 7 February 2023. Application will be made for 
admission of the sub-divided Shares to the premium listing segment of the 
Official List of the FCA and to trading on London Stock Exchange plc's Main 
Market for listed securities. It is anticipated that the last day of dealings 
in existing Shares will be 6 February 2023 with the record date for the Share 
Sub-Division being 6.00 p.m. on that date. The effective date for dealings to 

commence in the sub-divided Shares will be 7 February 2023. 
 
Extraordinary General Meeting and Circular to Shareholders 
 
The Shares issued under the Initial Issue and the Issuance Programme will be 
offered on a non-pre-emptive basis and the Sub-Division is subject to 
Shareholder approval. Accordingly, the Company has today published and posted 
to Shareholders an explanatory circular (the "Circular") containing a notice 
convening an extraordinary general meeting to be held at the offices of 
Northern Trust International Fund Administration Services (Guernsey) Limited, 
Trafalgar Court, Les Banques, St Peter Port, Guernsey at 8.30 a.m. on 6 
February 2023 (the "Extraordinary General Meeting"). 
 
Shareholder approval will be sought at the Extraordinary General meeting for 
the allotment and issue of the Shares to be issued under the Initial Issue and 
the Issuance Programme by way of an ordinary resolution and the disapplication 
of the pre-emption rights contained in the Company's articles of incorporation 
in respect of such Shares by way of a special resolution (the "Issuance 
Resolutions"). Approval of the Sub-Division by way of special resolution will 
also be proposed at the Extraordinary General Meeting. 
 
The Initial Issue and each subsequent issue under the Issuance Programme is 
conditional upon approval of the Issuance Resolutions at the Extraordinary 
General Meeting but is not conditional upon the Sub-Division Resolution being 
approved. 
 
A copy of the Circular will be submitted to the National Storage Mechanism and 
will be available for inspection at https://data.fca.org.uk/#/nsm/ 
nationalstoragemechanism. 
 
Amendments to the Management Agreement and the terms of the Company's 
investment in the Master Fund 
 
In order to reflect the increased investment of the Company in the Master Fund 
as a result of the Initial Issue and the Issuance Programme and the fact that 
the Company will become an even more significant feeder fund into the Master 
Fund, the Company and the Manager have agreed to a number of amendments to the 
Management Agreement and the terms on which the Company's investment in the 
Master Fund can be redeemed in order to provide the Manager with more 
operational certainty regarding the Company's investment in the Master Fund. 
These changes, which do not require Shareholder approval, are described in 
further detail in the Circular. 
 
The main changes and their effect are as follows: 
 
·    The Company will ordinarily be required to provide 12 months' notice of 
the redemption of all or some of its investment in the Master Fund, except as 
may be required to fund the Company's specific working capital requirements 
and, up to a maximum amount equal to five per cent. of each class of the 
Company's holding of Master Fund shares every month, to finance on-market share 
buy backs. Any redemption of all or part of the Company's investment in the 
Master Fund on a winding up of the Company or to finance a tender offer or a 
class closure resolution will be required to be on 12 months' notice. In those 
cases, the Company would only receive the proceeds of redemption from the 
Master Fund (and, therefore, Shareholders would only receive payment from the 
Company) after the redemption date at the end of the 12 month notice period and 
the Company (and, therefore, Shareholders) would remain exposed to the 
investment performance of the Master Fund in the intervening period to that 
redemption date. 
 
·    The circumstances in which the Company can terminate the Management 
Agreement and redeem its investment in the Master Fund on less than 12 months' 
notice will be limited to certain "cause" events affecting the Manager, in 
which case the Company would be entitled to terminate the Management Agreement 
and redeem its investment in the Master Fund on three months' notice. 
 
·    In addition, the annual buy back allowance arrangements introduced in 2021 
will continue to apply in respect of repurchases and redemptions of shares of 
each class in excess of five per cent. of the relevant class in any calendar 
year, as described further in the Circular. 
 
The Directors believe that these changes are in the interests in the Company, 
given that they will help facilitate the Initial Issue and the Issuance 
Programme, and that the Initial Issue and the Issuance Programme should benefit 
the Company through a significant increase in its market capitalisation and 
potential increase in the liquidity of the Shares. 
 
Background on the Company 
 
BH Macro Limited is an authorised closed-ended collective investment scheme 
established as a non-cellular company limited by shares under the laws of 
Guernsey on 17 January 2007. The Company's ordinary shares were first admitted 
to listing on London Stock Exchange on 14 March 2007. 
 
The Company's Sterling Shares and US Dollar Shares are listed on the premium 
segment of London Stock Exchange plc's Main Market for listed securities. Until 
2017, the Company also had a class of Euro-denominated shares listed on the 
premium segment of the Main Market. 
 
The Company is a feeder fund that invests all of its assets (net of short-term 
working capital requirements) directly in the Master Fund, a hedge fund in the 
form of a Cayman Islands open-ended investment company. 
 
The investment objective of the Master Fund is to generate consistent long-term 
appreciation through active leveraged trading and investment on a global basis. 
 
The Master Fund has flexibility to invest in a wide range of instruments 
including, but not limited to, debt securities and obligations (which may be 
below investment grade), bank loans, listed and unlisted equities, other 
collective investment schemes, currencies, commodities, futures, options, 
warrants, swaps and other derivative instruments and digital assets. The 
underlying philosophy is to construct strategies, often contingent in nature, 
with superior risk/return profiles, whose outcome will often be crystallised by 
an expected event occurring within a pre- determined period of time. 
 
The Master Fund employs a combination of investment strategies that focus 
primarily on economic change and monetary policy and market inefficiencies. 
 
The Company is one of five feeder funds into the Master Fund and is the only 
feeder fund that is publicly traded. 
 
Both the Company and the Master Fund are managed by the Manager, acting through 
its sole general partner, Brevan Howard Capital Management Limited. 
 
Expected Timetable 
 
Announcement of the Initial Issue                            23 January 2023 
 
Publication of the Prospectus and                            23 January 2023 
despatch of the EGM Circular to existing 
Shareholders 
 
Initial Placing, Intermediaries Offer and                    23 January 2023 
Offer for Subscription open 
 
Latest time and date for receipt of forms       8.30 a.m. on 2 February 2023 
of proxy in respect of the EGM 
 
Extraordinary General Meeting                   8.30 a.m. on 6 February 2023 
 
Record date for the sub-division and            6.00 p.m. on 6 February 2023 
disablement in CREST of the existing 
Shares 
 
Admission of new Shares issued pursuant         8.00 a.m. on 7 February 2023 
to the Sub-division Resolution becoming 
effective* 
 
Latest time and date for receipt of            11.00 a.m. on 9 February 2023 
completed Offer for Subscription 
Application Forms and payment in full 
under the Offer for Subscription and 
settlement of relevant CREST instructions 
(as appropriate) 
 
Latest time and date for receipt of            11.00 a.m. on 9 February 2023 
completed applications from 
Intermediaries in respect of the 
Intermediaries Offer 
 
Latest time and date for receipt of            3.00 p.m. on 10 February 2023 
commitments under the Initial Placing 
 
Initial Closing Date                           3.00 p.m. on 10 February 2023 
 
Announcement of the results of the                          13 February 2023 
Initial Issue 
 
Initial Admission and dealings in the          8.00 a.m. on 15 February 2023 
Shares issued pursuant to the Initial 
Issue commence 
 
Crediting of CREST stock accounts in            as soon as practicable on 15 
respect of the Shares issued pursuant to                       February 2023 
the Initial Issue and payment in full 
under the Intermediaries Offer 
 
Where applicable, definitive share          Week commencing 20 February 2023 
certificates despatched in respect of the            (or as soon as possible 
Shares**                                                         thereafter) 
 
* Assuming that the Sub-division Resolution is passed at the Extraordinary 
General Meeting and becomes effective. 
 
** Underlying applications who apply to Intermediaries for Shares under the 
Intermediaries Offer will not receive share certificates. 
 
Enquiries 
 
BH Macro 
Richard Horlick 
Chairman 
 
J.P. Morgan Cazenove (Sole Bookrunner) 
William Simmonds / Rupert Budge (Corporate Finance)      Tel: [phone] 
4000 
James Bouverat / Liam MacDonald-Raggett (Sales) 
 
Kepler Partners LLP (Placing Agent & Intermediaries Offer Adviser) 
Hugh van Cutsem Tel: [phone] 
Hugo Rynsard-Perry Tel: [phone] 
 
Important Notice 
 
The information contained in this announcement is for background purposes only 
and does not purport to be full or complete. No reliance may be placed by any 
person for any purpose on the information contained in this announcement or its 
accuracy, fairness or completeness. 
 
Investors should not base any financial decision on this announcement. 
Acquiring investments to which this announcement relates may expose an investor 
to a significant risk of losing all of the amount invested. Persons considering 
making investments should consult an authorised person specialising in advising 
on such investments. This announcement does not constitute a recommendation 
concerning the Shares. The value of shares can decrease as well as increase. 
Potential investors should consult a professional advisor as to the suitability 

of the Shares Option for the person concerned. 
 
Nothing contained herein constitutes or should be construed as (i) investment, 
tax, financial, accounting or legal advice (ii) a representation that any 
investment or strategy is suitable or appropriate to individual circumstances 
or (iii) a personal recommendation. 
 
J.P. Morgan Securities plc, which conducts its UK investment banking activities 
as J.P. Morgan Cazenove ("JPMC"), which is authorised by the Prudential 
Regulation Authority and regulated by the Prudential Regulation Authority and 
the FCA in the United Kingdom, is acting exclusively for the Company and no-one 
else in connection with the Initial Issue and the Issuance Programme and the 
Issue and will not be responsible to anyone other than the Company for 
providing the protections afforded to customers of JPMC or for providing advice 
in relation to the Initial Issue and the Issuance Programme, or any other 
matter referred to herein 
 
This announcement does not constitute an offer or solicitation to acquire or 
sell any securities in the Company. This announcement is not for distribution 
in or into the United States or to any US Person, Australia, Canada, Japan, New 
Zealand, the Republic of South Africa, any European Economic Area state or any 
other jurisdiction in which its distribution may be unlawful. A "US Person" is 
any person who is not a "Non-United States Person" as defined in US Commodity 
Futures Trading Commission Rule 4.7. This announcement is not an offer of 
securities for sale in the United States or elsewhere. The securities of the 
Company have not been and will not be registered under the United States 
Securities Act of 1933, as amended (the "Securities Act"), and may not be 
offered or sold in the United States unless registered under the Securities Act 
or pursuant to an exemption from such registration. The Company has not been 
and will not be registered under the US Investment Company Act of 1940, as 
amended, and investors are not entitled to the benefits of that Act. There has 
not been and there will be no public offering of the Company's securities in 
the United States. 
 
None of the Company, the Manager or JPMC or any of their respective affiliates 
accepts any responsibility or liability whatsoever for/or makes any 
representation or warranty, express or implied, as to this announcement, 
including the truth, accuracy or completeness of the information in this 
announcement (or whether any information has been omitted from the 
announcement) or any other information relating to the Company whether written, 
oral or in a visual or electronic form, and howsoever transmitted or made 
available or for any loss howsoever arising from any use of this announcement 
or its contents or otherwise arising in connection therewith. The Company, the 
Manager, JPMC and their respective affiliates accordingly disclaim all and any 
liability whether arising in tort, contract or otherwise which they might 
otherwise have in respect of this announcement or its contents or otherwise 
arising in connection therewith. 
 
This announcement includes statements that are, or may be deemed to be, 
"forward-looking statements". These forward-looking statements can be 
identified by the use of forward-looking terminology, including the terms 
"believes", "estimates", "anticipates", "forecasts", "projects", "expects", 
"intends", "may", "will" or "should" or, in each case, their negative or other 
variations or comparable terminology. These forward-looking statements include 
all matters that are not historical facts. All forward-looking statements 
address matters that involve risks and uncertainties and are not guarantees of 
future performance. Accordingly, there are or will be important factors that 
could cause the Company's actual results of operations, performance or 
achievement or industry results to differ materially from those indicated in 
these statements. Any forward-looking statements in this announcement reflect 
the Company's current views with respect to future events and are subject to 
these and other risks, uncertainties and assumptions relating to the Company's 
operations, results of operations, growth strategy and liquidity. Given these 
uncertainties, prospective investors are cautioned not to place any undue 
reliance on such forward-looking statements. These forward-looking statements 
apply only as of the date of this announcement. 
 
 
Information to distributors 
 
Solely for the purposes of the product governance requirements contained 
within: (a) EU Directive 2014/65/EU on markets in financial instruments, as 
amended ("Directive 2014/65/EU"); (b) Articles 9 and 10 of Commission Delegated 
Directive (EU) 2017/593 supplementing Directive 2014/65/EU; (c) local 
implementing measures; and/or (d) (where applicable to UK investors or UK 
firms) the relevant provisions of the UK MiFID Laws (together the "MiFID II 
Product Governance Requirements"), and disclaiming all and any liability, 
whether arising in tort, contract or otherwise, which any "manufacturer" (for 
the purposes of the MiFID II Product Governance Requirements) may otherwise 
have with respect thereto, the Shares have been subject to a product approval 
process, which has determined that the Shares are: (i) compatible with an end 
target market of retail investors and investors who meet the criteria of 
professional clients and eligible counterparties, each as defined in Directive 
2014/65/EU or the UK MiFID Laws (as applicable) and (ii) eligible for 
distribution through all distribution channels as are permitted by Directive 
2014/65/EU or the UK MiFID Laws, as applicable (the "Target Market 
Assessment"). 
 
Notwithstanding the Target Market Assessment, distributors should note that: 
the price of the Shares may decline and investors could lose all or part of 
their investment; the Shares offer no guaranteed income and no capital 
protection; and an investment in the Shares is compatible only with investors 
who do not need a guaranteed income or capital protection, who (either alone or 
in conjunction with an appropriate financial or other adviser) are capable of 
evaluating the merits and risk of such an investment and who have sufficient 
resources to be able to bear any losses that may result therefrom. The Target 
Market Assessment is without prejudice to the requirements of any contractual, 
legal or regulatory selling restrictions in relation to the Initial Issue. 
Furthermore, it is noted that, notwithstanding any Target Market Assessment, 
JPMC will, pursuant to the Initial Placing, only procure placees who meet the 
criteria of professional clients and eligible counterparties. 
 
For the avoidance of doubt, the Target Market Assessment does not constitute: 
(a) an assessment of suitability or appropriateness for the purposes of 
Directive 2014/65/EU or the UK MiFID Laws (as applicable); or (b) a 
recommendation to any investors or group of investors to invest in, or 
purchase, or take any other action whatsoever with respect to the Shares. 
 
Each distributor is responsible for undertaking its own Target Market 
Assessment in respect of the Shares and determining appropriate distribution 
channels. 
 
PRIIPs Regulation 
 
In accordance with the UK version of the Regulation (EU) No 1286/2014 of the 
European Parliament and of the Council of 26 November 2014 on key information 
documents for packaged retail and insurance-based investment products (PRIIPs) 
and related legislation (the "UK PRIIPs Laws"), key information documents in 
respect of an investment in the Sterling Shares and the US Dollar Shares have 
been prepared by the Manager and are available to investors at www.bhmacro.com. 
 
If you are distributing the Shares, it is your responsibility to ensure that 
the key information document relating to the relevant class of Shares is 
provided to any clients that are "retail clients". The Company is the only 
manufacturer of the Shares for the purposes of the UK PRIIPs Laws or the PRIIPs 
Regulation and JPMC is not a manufacturer for these purposes. JPMC does not 
make any representation, express or implied, or accept any responsibility 
whatsoever for the contents of any key information documents prepared by the 
Manager nor accept any responsibility to update the contents of any key 
information documents in accordance with the UK PRIIPs Laws or the PRIIPs 
Regulation, to undertake any review processes in relation thereto or to provide 
such key information documents to future distributors of Shares. JPMC and its 
affiliates accordingly disclaim all and any liability whether arising in tort 
or contract or otherwise which it or they might have in respect of any key 
information documents prepared by the Manager. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

January 23, 2023 03:02 ET (08:02 GMT)